When Determining the Timing of the Accounts Receivable Confirmations

question 72

Multiple Choice

When determining the timing of the accounts receivable confirmations,

• A) the receivables cannot be confirmed at an interim date.
• B) if accounts receivable are confirmed before year-end, the auditor typically prepares a roll-forward schedule.
• C) if the receivables are confirmed at an interim date, they must also be confirmed at year-end.
• D) if internal controls are adequate, the accounts receivable must be confirmed at year-end.

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Definitions:

Central Government

The government entity responsible for the administration and implementation of policies over an entire nation as opposed to local governing bodies.

Pro-Debtor Laws

Legislation designed to protect individuals who owe money, often by offering bankruptcy protections, limiting interest rates, and providing mechanisms for debt relief.

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781 and replaced by the U.S. Constitution in 1789, which provided a loose federal government.

Tariff Duties

Taxes imposed by a government on imported or exported goods to protect domestic industries or generate revenue.