The Auditor Obtains Corroborating Audit Evidence for Accounts Receivable by Using

question 13

Multiple Choice

The auditor obtains corroborating audit evidence for accounts receivable by using positive or negative confirmation requests.Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?

• A)A substantial number of accounts are in dispute.
• B)Internal control over accounts receivable is ineffective.
• C)Client records include a large number of relatively small balances.
• D)The auditor believes that recipients of the requests are unlikely to give them consideration.

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Definitions:

Advice and Consent

A constitutional principle that requires the Senate to approve certain appointments made by the President.

Treaties

Formal agreements between sovereign states or between sovereign states and international organizations, typically ratified by the legislative bodies of those entities.

Senate

The upper house of the United States Congress or of a state legislature, responsible for making and passing laws.

Necessary and Proper Clause

A provision in the U.S. Constitution granting Congress the power to pass all laws necessary and proper for carrying out its enumerated powers.