Which of the Following Strategies Most Likely Could Improve the Response

question 78

Multiple Choice

Which of the following strategies most likely could improve the response rate of the confirmation of accounts receivable?

• A) Including a monthly statement of the customer's account with the confirmation.
• B) Restricting the selection of accounts to be confirmed to those customers with relatively large balances.
• C) Requesting customers to respond to the confirmation requests directly to the auditor by fax or e-mail.
• D) Notifying the recipients that second requests will be mailed if they fail to respond in a timely manner.

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Definitions:

Partnership Law

The legal framework that governs the creation, operation, and dissolution of a business partnership, including the rights and responsibilities of the partners.

Agency Relationship

The association between one party and an agent who acts on behalf of that party.

Binding Obligations

Duties or agreements that are legally enforceable, requiring parties to fulfill their contractual commitments.

Unlimited Personal Liability

A legal obligation that holds an individual personally responsible for all debts and obligations of a business, without any limit on the amount that can be claimed.