When Positive Confirmations Are Used, Auditing Standards Require Follow-Up Procedures

question 13

Multiple Choice

When positive confirmations are used, auditing standards require follow-up procedures for confirmations not returned by the customer. Which of the following would not be considered an alternative procedure?

• A) Send a second confirmation request.
• B) Examine subsequent cash receipts to determine if the receivable has been paid.
• C) Examine shipping documents to verify that the merchandise was shipped.
• D) Examine customer's purchase order and the duplicate sales invoice to determine that the merchandise was ordered.

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Definitions:

Consumer Education

The process by which the average person learns to make informed decisions about goods and services, including healthcare.

Good Health

A state of complete physical, mental, and social well-being, not merely the absence of disease.

Healthcare-Related Occupations

Jobs that are involved in the provision of health services to individuals, ranging from medical practice to administration and support.

Consumer Education

Programs or initiatives designed to inform consumers about products, services, and their rights and responsibilities in the marketplace.