The Auditing Standards Presume That the Auditor Will Request Confirmation

question 71

Multiple Choice

The auditing standards presume that the auditor will request confirmation of accounts receivable balances unless

• A)the transactions in accounts receivable are immaterial
• B)the use of confirmations would be effective if the amount were significant
• C)the auditor can reduce the risk of issuing the wrong audit opinion to an acceptable low level without confirming accounts receivable
• D)the client believes that confirmations are not necessary

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Definitions:

Encounter Stage

A phase in organizational socialization when a new employee begins to understand and adjust to the values, skills, and norms required for success in the job and organization.

Anticipatory Socialization

The process through which individuals learn and adopt the values, behaviors, and social skills necessary for future social roles.

Psychological Contract

A perceived agreement between an employee and employer outlining mutual expectations of inputs and outcomes.

Anticipatory Socialization

The process where individuals learn and adopt the norms and behaviors of a role they aspire to occupy in the future.