When Making the Sampling Decisions for Accounts Receivable Confirmations

question 76

Multiple Choice

When making the sampling decisions for accounts receivable confirmations,

• A) it is important to sample some items for every material segment of the population.
• B) if management refuses to allow the auditor to send confirmation requests to certain customers, the auditor must withdraw from the engagement.
• C) inherent risk does not impact the sample size.
• D) stratification of the sample is discouraged under current auditing standards.

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Definitions:

Genealogical Map

A visual representation or chart showing the family relationships of individuals across different generations, used in the study of family history and lineage.

Interviews

A method of gathering information by asking questions orally, used often in research or employment selection.

Time-Consuming

Activities or tasks that require a significant amount of time to complete.

Rich Data

Comprehensive, detailed, and potentially complex information that provides deep insights when analyzed.