US Auditing Standards Indicate That Auditors Should Use External Confirmations

question 53

Essay

U.S. auditing standards indicate that auditors should use external confirmations for accounts receivable. However, there are certain circumstances where confirmation may not be appropriate. List these three situations.

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Definitions:

Class Analysis

A study in sociology that focuses on the distribution of wealth and labor in a society, and how this distribution creates distinct social classes with different interests and power.

Functionalist Analysis

A sociological perspective that analyzes every component of society by examining its role in maintaining the overall societal stability.

Stratification

A sociological term referring to the classification of society into groups based on wealth, power, and social status.

Progressive Taxation

A taxing system where the tax rate increases as the taxable amount increases, with higher income individuals paying a higher percentage of their income than lower-income individuals.