Unreturned Positive Confirmations for Accounts Receivable Warrant Which of the Following

question 29

Multiple Choice

Unreturned positive confirmations for accounts receivable warrant which of the following actions?

• A)Replacing the sample selection with a new customer.
• B)Sending second requests and possibly performing subsequent procedures.
• C)The projection of larger misstatements to the population.
• D)Requesting that the client send additional audit correspondence to customers.

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Definitions:

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owner's equity (Assets = Liabilities + Owner's Equity).