After the CPAs Have Selected Particular Accounts Receivable for Confirmation

question 43

Multiple Choice

After the CPAs have selected particular accounts receivable for confirmation:

• A)As a control measure,the CPAs should carefully list the audited values of all of those accounts before turning the letters over to the client to type and mail.
• B)It is important that every account selected that has a material balance ultimately be verified by confirmation or the application of alternative procedures;immaterial balances never require any follow-up through alternative procedures.
• C)All requests for confirmation should be mailed personally by the auditors at a post office.
• D)All differences between confirmation replies and book values should be reconciled by the CPAs,rather than the client.

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Definitions:

1980

A year marked by significant global events including the eruption of Mount St. Helens and the election of Ronald Reagan as the President of the United States.

Government Ownership

The possession and control over enterprises and assets by the state or government, rather than private individuals or organizations.

Federal Government

The federal government refers to the national government of a country that is responsible for enacting and enforcing laws, collecting taxes, and managing the country’s affairs.

Defense Spending

Government expenditure on military forces and activities, including salaries, benefits, weapons systems, and operations.