When There Are a Large Number of Relatively Small Account

question 70

Multiple Choice

When there are a large number of relatively small account receivable balances,negative confirmation requests may be appropriate if the combination of inherent risk and control risk is:

• A)Low,and the individuals receiving the confirmation requests are unlikely to give them adequate consideration.
• B)High,and the individuals receiving the confirmation requests are likely to give them adequate consideration.
• C)High,and the individuals receiving the confirmation requests are unlikely to give them adequate consideration.
• D)Low,and the individuals receiving the confirmation requests are likely to give them adequate consideration.