How Does the Auditor Gather Evidence Using the Confirmation Process

question 81

Multiple Choice

How does the auditor gather evidence using the confirmation process?

• A)The client selects a sample of customer balances from the year-end accounts receivable subsidiary ledger
• B)Each of the customers selected for confirmation will be sent a letter asking him to confirm the balance that he is owed by the audit client at year-end
• C)The auditor can choose to send either positive or negative confirmations
• D)Positive confirmations request the customer to return the confirmation directly to management if the balance is correct or incorrect
• E)Negative confirmations request the customer to return the confirmation directly to the auditor only if the balance is incorrect
• F)Both A and B
• G)Both B and C
• H)Both C and E

---

Definitions:

Depressed Fracture

A type of bone fracture where part of the bone is pushed inward, often seen in skull fractures.

Greenstick Fracture

An incomplete fracture, occurring in children.

Open Fracture

A type of bone fracture where the broken bone penetrates through the skin, creating an open wound and increasing infection risk.

Closed Fracture

A type of bone fracture where the skin over the wound remains intact and there is no visible wound over the fracture site.