If the Auditor Decides Not to Confirm Accounts Receivable That

question 48

Multiple Choice

If the auditor decides not to confirm accounts receivable that are material, the auditor should

• A) always use alternative procedures to audit the accounts receivable.
• B) include copies of customer statements in the audit files.
• C) document the reasons for such a decision in the audit files.
• D) include copies of customer sales invoices in the audit files.

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Definitions:

Correspondent Bank

A bank that provides services on behalf of another, typically foreign, bank, including currency exchange and handling international transactions.

European Community

A group of European countries that participated in an economic and political union to promote integration and cooperation.

Common Market

An economic union of countries that allows for the free movement of goods, services, capital, and labor across member states.

Multinational Enterprise

A multinational enterprise is a company that has operations and investments beyond its home country, conducting business in multiple countries around the world.