When Positive Confirmations Are Used, Auditing Standards Require Alternative Procedures

question 125

Multiple Choice

When positive confirmations are used, auditing standards require alternative procedures for confirmations not returned by the customer. Which of the following would not be considered an alternative procedure?

• A) Send a second confirmation request.
• B) Examine subsequent cash receipts to determine if the receivable has been paid.
• C) Examine shipping documents to verify that the merchandise was shipped.
• D) Examine sales invoice to verify the actual issuance of a sales invoice and the actual date of the billing.

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Definitions:

Offer of Proof Stage

A phase in legal proceedings where a party indicates what evidence would be provided to prove a point or defense, often after an objection to said evidence.

Stare Decisis

A legal principle that mandates courts to follow the precedents set by previous decisions in similar cases.

Writ of Certiorari

An order by a higher court to review the decision of a lower court or administrative agency.

Appeal by Right

The statutory right to have a higher court review the decision of a lower court, typically guaranteed without the higher court's discretion to deny the review.