The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 62

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:

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