In the Confirmation of Accounts Receivable, the Auditor Would Most

question 33

Multiple Choice

In the confirmation of accounts receivable, the auditor would most likely

• A) Randomly select a representative sample of accounts for confirmation.
• B) Seek to obtain positive confirmations for at least 50% of the total dollar amount of the receivables.
• C) Require confirmation of all receivables from agencies of the federal government.
• D) Require that confirmation requests be sent within one month of the fiscal year-end.

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Definitions:

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, often used in employer-employee relations.

Wrongful Acts

Actions or behaviors that are illegal or morally incorrect according to societal norms.

Partnership Business

A sanctioned business model that entails a partnership between individuals, distributing both management roles and profit allocations.

Innocent Partner

A member of a partnership who is not aware of any wrongful behavior or fraudulent activity committed by their partner(s) within the business operations.