When the Positive Form of Accounts Receivable Confirmation Is Used

question 36

Multiple Choice

When the positive form of accounts receivable confirmation is used and no response is received, the auditor should normally:

• A) assume the account is in error.
• B) send a second positive request.
• C) assume the account is correct.
• D) send a negative confirmation.

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Definitions:

Settle Price

The official price at the end of a trading session on a futures exchange, used for calculations of margin and account balances.

Option Premium

The price paid for the rights granted by an options contract, not considering the actual trading of the underlying asset.

June 550 Call

An options contract granting the holder the right, but not the obligation, to buy an underlying asset at a predetermined price of 550 units, expiring in June.

Gold

A precious metal that is used as an investment, a store of value, and in jewelry, due to its scarcity, durability, and aesthetic appeal.