To Reduce the Risks Associated with Accepting E-Mail Responses to Requests

question 77

Multiple Choice

To reduce the risks associated with accepting e-mail responses to requests for confirmation of accounts receivable, an auditor most likely would

• A) Request the senders to mail the original forms to the auditor or the auditor may follow up with a telephone call to verify the response.
• B) Examine subsequent cash receipts for the accounts in question.
• C) Consider the e-mail responses to the confirmations to be exceptions.
• D) Mail second requests to the e-mail respondents.

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Definitions:

Compromise

A settlement of differences by mutual concessions or modification of demands.

Future Favors

A practice commonly seen in developing countries based upon mutual obligation and resulting in the exchange of favors over years and even generations; also used in some industrialized countries such as Japan and South Korea.

Inner Circle

A clique of trusted family members, tribal members, or friends (depending on the culture) who are at the center of power or influence.

Ethical Standards

Principles that govern the behavior of individuals and organizations, determining what is right and wrong.