To Reduce the Risks Associated with Accepting E-Mail Responses to Requests

question 37

Multiple Choice

To reduce the risks associated with accepting e-mail responses to requests for confirmation of accounts receivable,an auditor most likely would

• A) request the senders to mail the original forms to the auditor or the auditor may follow up with a telephone call to verify the response.
• B) examine subsequent cash receipts for the accounts in question.
• C) consider the e-mail responses to the confirmations to be exceptions.
• D) mail second requests to the e-mail respondents.

---

Definitions:

Statement of Comprehensive Income

A financial report that includes all changes in equity during a period except those resulting from investments by and distributions to owners.

Operating, Normal Business Activities

Transactions and events that directly affect the provision of goods or services to customers.

Statement of Financial Position

A financial statement that details an organization's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial health.

Retained Earnings

The portion of a company's profits that are kept or retained rather than distributed to shareholders or used to pay off debt.