How Does the Auditor Gather Evidence Using the Confirmation Process

question 34

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)The client prepares the confirmation letters and the auditor mails the letters
• C)Management can choose to send either positive or negative confirmations
• D)The auditor prepares the confirmation letters and the client mails the letters
• E)Negative confirmations request the customer to return the confirmation directly to the auditor only if the balance is correct

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Definitions:

Local Ecosystems

Biological communities in a specific, smaller geographic area and the interactions with their environment.

Wild Animal

An animal living in its natural habitat, not domesticated or tamed, capable of surviving without human intervention.

Illegal

Illegal refers to actions or activities that are forbidden by law and subject to penalties or sanctions.

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Beauty contests characterized by participants wearing heavy makeup, elaborate hairstyles, and extravagant costumes, focusing on overall appearance and presentation.