Which of the Following Is a Correct Statement Regarding Confirmations

question 115

Multiple Choice

Which of the following is a correct statement regarding confirmations?

• A) Confirmations can be in oral or written form.
• B) Electronic confirmations are not acceptable under generally accepted auditing standards.
• C) Confirmations are generally used in the audit of fixed asset additions.
• D) Auditors consider alternative evidence available when determining if confirmations should be used.

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Definitions:

Annual Rate

The interest rate for a loan or investment over a one-year period, often used to compare the yield of financial products.

Student Loans

Loans taken by students to cover higher education expenses, expected to be repaid with interest.

Simple Interest Rates

Interest calculated only on the principal amount of a loan or deposit, without compounding over time.

Outstanding Balance

The amount of money owed on a loan, credit card, or any other debt that remains unpaid.