In Confirming Accounts Receivable, an Auditor Decided to Confirm Customers

question 75

Multiple Choice

In confirming accounts receivable, an auditor decided to confirm customers' account balances rather than individual invoices. Which of the following most likely would be included with the entity's confirmation letter?

• A)An auditor-prepared letter explaining that a nonresponse may cause an inference that the account balance is correct.
• B)A client-prepared letter reminding the customer that a nonresponse will cause a second request to be sent.
• C)An auditor-prepared letter requesting the customer to supply missing and incorrect information directly to the auditor.
• D)A client-prepared statement of account showing the details of the customer's account balance.

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Definitions:

Amino Acids

Organic compounds that combine to form proteins, essential for many body functions including tissue repair and nutrient absorption.

Free Radicals

Unstable molecules that can damage cells, contributing to aging and diseases, including cancer.

Glycogen

A form of glucose storage within the body, predominantly found in the liver and muscle tissues, serving as a primary energy reserve.

Immune System

The body's defense system comprised of organs, tissues, cells, and proteins that work together to fight off pathogens, such as bacteria, viruses, parasites, and fungi.