Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because a.

Question:

Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because

a. A majority of recipients usually lack the willingness to respond objectively.

b. Some recipients may report incorrect balances that require extensive follow-up.

c. The auditor cannot infer that all nonrespondents have verified their account information.

d. Negative confirmations do not produce evidence that is statistically quantifiable.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing And Assurance Services

ISBN: 9780073527086

7th Edition

Authors: William MessierSteven Glover

See More Books

Question Posted: May 06, 2024 07:00 AM

See More Questions

1. For the control activities to be effective, employees maintaining the accounts receivable subsidiary ledger should not also approve a. Employee overtime wages. b. Credit granted to customers. c....
1. The auditor wants to gain assurance that all telephone orders received were shipped and billed in a timely fashion. Which of the following audit procedures would be most effective in meeting the...
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
Mike and Linda are a married couple who file jointly and have $100,000 of taxable income. They have three dependent children who are full-time students in 2022. Mike and Linda provided $8,000 of...
Find the maximum volume of the first-octant rectangular box with faces parallel to the coordinate planes, one vertex at (0, 0, 0), and diagonally opposite vertex on the plane x/( + y/b + z/c = 1
Given an acceleration vector, initial velocity (40, Yo), and initial position (X),Yo), find the velocity and position vectors for t 0. a(t) = (cost, 3 sint), (u,v) = (0,5), (x,y) = (1,0) What is the...
A source with a strength of $q=3 \pi \mathrm{m}^{2} / \mathrm{s}$ and a sink with a strength of $q=\pi \mathrm{m}^{2} / \mathrm{s}$ are located on the $x$ axis at $x=-1 \mathrm{~m}$ and \(x=1...
1. Would the name Hallowed receive protection as a trademark or as trade dress? 2. If Trent and Xavier had obtained a business process patent on Hallowed, would the release of Halo 2 infringe on...
Prepare a CVP income statement that shows both total and per unit amounts. CRANE NEWS MANUFACTURING, INC. CVP Income Statement For the Month Ended September 30, 2022 Total (b) Sales Variable costs...
An auditor should perform alternative procedures to substantiate the existence of accounts receivable when a. No reply to a positive confirmation request is received. b. No reply to a negative...
Which of the following is most likely to be detected by an auditor's review of a client's sales cutoff? a. Unrecorded sales for the year. b. Lapping of year-end accounts receivable. c. Excessive...
The following information is taken from the 2008 financial statements of La-Z-Boy, Inc., and the 2008 financial statements of McDonalds. 1. Before you do any computations, forecast which of the two...
What would be the return on a 3 month $1 million t-bill if the YTM is 6.0% and the bill is held for the entire 3 months? Remember to use day counts and the 3 month time period vs the annual yield...
Consider the following pseudo-code: Algorithm FibCache Inputs: n, an integer >= 0 C, an array of integers Output: the nth Fibonacci number (and possible changes to C) 1 if capacity(C)
You have a loan where you are being charged an effective annual rate of interest of 26.9%. You make payments on the loan two times a month. Therefore you make 24 payments per year. What is the...
The average return on a security with a beta of 0.3 is $13.09 per year. The risk free rate is 0.02 and the return on the market portfolio is 0.09. What is the appropriate value of this security based...
Pamela is considering a 30-year mortgage with the following terms: Loan amount = $600,000 Annual rate = 9.9% Assuming payments occur at the end of each month, what will be the monthly mortgage...
Water flowing in a line at 400 kPa, saturated vapor, is taken out through a valve to 100 kPa. What is the temperature as it leaves the valve assuming no changes in kinetic energy and no heat transfer?
You are a Loan Officer with an Investment Bank. Today you need to set your lending parameters. They are: LTV: 55% 10 Year T-Bill: TBD Rate Markup: 300 Basis Points Term: 30 Years Amortization: 30...
The distance D that a charter bus is away from a destination in Arizona after t hours is represented by: D= f(t) = 1850 - 60t Determine the range of the bus given the domain for the first 19 hours,...
There are many theories and concepts related to communication in interpersonal relationships, including Self-Disclosure, Social Judgment Theory, Social Comparison Theory, Social Penetration Theory,...
In this example, explan what the element is, and what it is doing in this HTML document 1 6 7 For the toolbar prose ALT 510/PCLOKALTLENIE10 (MSC) The Avenue Save Answer Output Blackheat Greenw Park...

Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because a.

Question:

Step by Step Answer:

The less effectiveness of negative confirmation of accounts receiva...View the full answer

Auditing And Assurance Services

Students also viewed these Business questions