The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 60

Multiple Choice

The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because:

• A)many customers merely sign and return the confirmation without verifying its details.
• B)recipients usually respond only if they disagree with the information on the request.
• C)customers may not be inclined to report understatement errors in their accounts.
• D)auditors typically select many accounts with low recorded balances to be confirmed.

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Definitions:

ICD-9-CM

The International Classification of Diseases, Ninth Revision, Clinical Modification; a predecessor to ICD-10-CM used for coding and classifying morbidity data from inpatient and outpatient records, primary replaced by ICD-10-CM.

Medicine

The science and practice of the diagnosis, treatment, and prevention of disease, as well as the maintenance of health.

ICD-9-PCS

an abbreviation for the International Classification of Diseases, Ninth Revision, Procedure Coding System; a system used in healthcare to classify procedures and interventions.

Counseling

The professional guidance of individuals by utilizing psychological methods, especially in collecting case history data, using various techniques of the personal interview, and testing interests and aptitudes.