Auditors Are Concerned with the Addresses Provided for Customers in the Confirmation

question 50

Multiple Choice

Auditors are concerned with the addresses provided for customers in the confirmation of accounts receivable because

• A)confirmations are selected based upon zip codes.
• B)a P.O.Box is more reliable than a street address.
• C)confirmations should be sent only to business addresses and not residential.
• D)the address may be routed to the client for retrieval and fraudulent signing.

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Definitions:

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Market Price

The present rate at which a service or asset is available for purchase or sale.

True Synergies

The real and achievable benefits and efficiencies gained by combining companies, processes, or systems, often cited as a justification for mergers and acquisitions.

Pre-merger Value

The market value of a company before it enters into a merger or acquisition agreement.