To Be Considered Reliable Evidence, Confirmations Must Be Controlled by

question 45

Multiple Choice

To be considered reliable evidence, confirmations must be controlled by

• A) the client's employee responsible for accounts receivable.
• B) the external auditor.
• C) the client's internal audit department.
• D) the client's controller or CFO.

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Definitions:

Priority

The status of having precedence or more importance in comparison to other issues or tasks.

Unsecured Liabilities

Obligations or debts that are not protected by collateral, meaning the lender does not have claims on specific assets of the borrower if the debt is not repaid.

Non-Priority

A designation for debts or considerations that are deemed less important and hence are lower in the order of settlement or attention compared to priority ones.

Total Liabilities

The sum of all financial obligations (debts) owed by a company to external parties, recorded on its balance sheet.