When Control Risk for the Existence Assertion Is Assessed at a High

question 29

Multiple Choice

When control risk for the existence assertion is assessed at a high level,which of the following is a likely effect with respect to the auditors' confirmation of receivables?

• A)The account balances as of year-end will generally be confirmed.
• B)The auditors will in general use blank rather than positive confirmation requests.
• C)The auditors will be required to confirm accounts as of an interim date (during the year under audit)and as of year-end.
• D)Confirmation will not in general be used as the auditor will rely primarily upon support such as vendors' invoices,purchase orders and receiving reports.

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Definitions:

Social Media

Online platforms that allow users to create and share content or to participate in social networking.

Social Networks

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Online Service

A service provided over the internet, allowing users to access information or perform tasks remotely.

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