The Type of Confirmation Is a Major Factor Affecting Sample

question 42

True/False

The type of confirmation is a major factor affecting sample size when confirming accounts receivable, with negative confirmations normally requiring a larger sample than positive confirmations.

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Definitions:

Recording

The process of documenting financial transactions in the accounting records of a business.

Consolidation Entry A

An accounting entry made to adjust or combine financial information from separate entities during consolidation.

Consolidation Worksheet

A tool used in the preparation of consolidated financial statements that helps in adjusting and combining the financial information of parent and subsidiary entities.

Purpose

The objective or intended outcome that an organization or plan is meant to achieve.