When Should Auditors Not Perform Alternative Procedures in Testing the Accounts

question 118

Multiple Choice

When should auditors not perform alternative procedures in testing the accounts receivable balance?

• A) when customers do not return positive confirmation requests
• B) when customers do not return negative confirmation requests
• C) when confirmations are deemed to be ineffective as an audit procedure
• D) when confirmations are too costly to use

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Definitions:

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Financial plans that estimate income and expenditures for a specific period, often used for planning and control purposes.

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