When No Reply to a Positive Confirmation Is Received, the Auditor

question 62

Multiple Choice

When no reply to a positive confirmation is received, the auditor:

• A) examines subsequent cash receipts.
• B) treats the non-response as a misstatement.
• C) examines duplicate sales invoices.
• D) both A and C

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Definitions:

Population

The entire group or set of items or individuals from which samples may be drawn for statistical analysis.

Statistical Inference

The process of making predictions or decisions about a population based on sample data.

Reliability

The degree to which an assessment tool produces stable and consistent results.

Significance Level

The threshold of probability below which a null hypothesis is rejected in statistical tests, representing the risk of a Type I error.