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:

Neurological Deficit

A functional abnormality or loss that occurs due to damage in the nervous system, affecting movements, sensation, or cognitive abilities.

Hearing Deficit

A reduction in the ability to hear sounds in one or both ears; can range from mild to profound hearing loss.

Balance Deficit

A lack of stability and coordination which can increase the risk of falls, often resulting from inner ear disorders, neurological conditions, or aging.

Vertigo

Sensation of dizziness or spinning.