Which One of the Following Procedures Would Be Considered Improper

question 17

Multiple Choice

Which one of the following procedures would be considered improper by the auditor in the process of confirming receivables?

• A)The auditor allows the client's staff to prepare the confirmation letters after the auditor has chosen the items to be confirmed.
• B)The auditor allows the client to sign the confirmations after they are prepared.
• C)The auditor allows the client's staff to mail the confirmation letters after he or she has proofed the typing of the letters.
• D)The auditor asks the addressee to return the confirmation to the audit firm's office.

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Definitions:

Retailer

A business or person that sells goods directly to consumers from a physical or online store.

Periodic Inventory System

An accounting method that records inventory purchases and sales periodically, often at the end of an accounting period, instead of continuously updating stock levels.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead.

Accounting Period

The specific time period during which financial transactions are recorded and financial statements are prepared, typically a quarter or a year.