Which of the Following Circumstances Would Indicate That Positive Confirmations

question 82

Multiple Choice

Which of the following circumstances would indicate that positive confirmations should be used on this engagement?

• A)A significant portion of the total accounts receivable balance is represented by a small number of accounts with large balances.
• B)The internal control over accounts receivable is good.
• C)The recipients are mostly businesses rather than individuals.
• D)The auditor is unaware of disputed or inaccurate accounts.

---

Definitions:

Psychoanalyst

A therapist who follows and practices psychoanalytic theories, primarily those of Freud, focusing on the unconscious mind.

Denial

A defense mechanism where a person refuses to accept reality or facts, blocking external events from awareness.

Defense Mechanism

Unconscious psychological strategies employed to protect oneself from anxiety or social sanctions and to provide a refuge from a situation with which one cannot currently cope.

Painful Realities

The acceptance or acknowledgment of difficult, distressing, or unpleasant truths or situations.