In Confirming a Client's Accounts Receivable in Prior Years, an Auditor

question 25

Multiple Choice

In confirming a client's accounts receivable in prior years, an auditor discovered many differences between recorded account balances and confirmation replies. These differences were resolved and were not misstatements. In defining the sampling unit for the current year's audit, the auditor most likely would choose:

• A)customers with credit balances.
• B)small account balances.
• C)individual overdue balances.
• D)individual invoices.

---

Definitions:

Policies

Principles or guidelines that govern actions towards achieving desired outcomes or objectives within an organization or government.

Government

The governing body of a nation, state, or community, responsible for making and enforcing laws.

Personnel

Employees or staff members within an organization, regarded collectively as an important resource.

Lobbying Offices

Organizations or groups that attempt to influence political decisions on behalf of their interests.