Auditors May Use Positive And/or Negative Forms of Confirmation Requests

question 6

Multiple Choice

Auditors may use positive and/or negative forms of confirmation requests for accounts receivable. Which of the following statements is true regarding the auditor's use of confirmations?

• A)The positive confirmation form must always be used to confirm all balances regardless of size.
• B)A combination of the two confirmation types can be used, with the positive form used for large balances and the negative form used for small balances.
• C)A combination of the two confirmation types can be used, with the positive form used for trade receivables and the negative form for other receivables.
• D)The positive confirmation form should be used when controls related to receivables are satisfactory and the negative confirmation form should be used when controls related to receivables are unsatisfactory.

Recognize the need to consider multiple dimensions in supplier comparison and selection.

Acknowledge the importance of design collaboration for supply chain and procurement efficiency.

Understand the benefits and impacts of effective sourcing decisions.

Apply concepts of supply chain management to real-world scenarios.

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Definitions:

Farm Exports

Agricultural products produced on farms that are sold and shipped to other countries as part of international trade.

Greater Productivity

An increased level of output per unit of input, often resulting from improvements in efficiency or effectiveness in processes.

European Union

A political and economic union of 27 European countries that have agreed to abide by certain rules and standards to promote economic integration, social progress, and peace within Europe.

Economic Alliance

An Economic Alliance is a coalition of countries, regions, or organizations aimed at improving economic collaboration, trade agreements, and mutual economic goals.