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:

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