The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 81

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) customers may not be inclined to report understatement errors in their accounts.
• C) recipients usually respond only if they disagree with the information on the request.
• D) auditors typically select many accounts with low recorded balances to be confirmed.
• E) auditors typically select few accounts with low recorded balances to be confirmed.

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Professionals who offer expert advice on financial planning, investments, retirement, and wealth management to individuals and businesses.

Balanced Portfolio

An investment strategy that combines a mix of assets, such as stocks and bonds, to mitigate risk while aiming for a moderate level of return.

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Financial Consultants

Professionals who offer expert advice on money management, investments, and financial planning.