Question: When control risk for the existence assertion is assessed at a high level, which of the following is a likely effect with respect to the

When control risk for the existence assertion is assessed at a high level, which of the following is a likely effect with respect to the auditors' confirmation of receivables?

  • The account balances as of year-end will generally be confirmed.
  • The auditors will in general use blank rather than positive confirmation requests.
  • The auditors will be required to confirm accounts as of an interim date (during the year under audit) and as of year-end.
  • Confirmation will not in general be used as the auditor will rely primarily upon support such as vendors' invoices, purchase orders and receiving reports.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!