The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 60

Multiple Choice

The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because:

• A)many customers merely sign and return the confirmation without verifying its details.
• B)recipients usually respond only if they disagree with the information on the request.
• C)customers may not be inclined to report understatement errors in their accounts.
• D)auditors typically select many accounts with low recorded balances to be confirmed.

---

Definitions:

Instinctive

Pertains to the inherent inclinations and responses that organisms are born with.

Instinctual Drive

An innate, biological motivator that drives behavior and responses to achieve specific needs.

Incentive

A motivational factor that prompts a person to act in a certain way or pursue a particular course of action.

Innate Goal

An inherent aim or objective that is hardwired into an organism, guiding its behaviors from birth.