Which one of the following types of receivables would NOT require special attention from the auditor?
A) accounts that have been outstanding for a long time
B) accounts with credit balances
C) accounts where no reply was received to a negative confirmation request
D) receivables from affiliated companies

Question

Quizplus · Accepted Answer

Negative confirmation requests are a type of audit procedure where the auditor asks the debtor to respond only if they disagree with the stated amount. Not receiving a reply to a negative confirmation request is generally considered less concerning because it implies the debtor agrees with the balance, thus requiring less special attention compared to the other options listed.

Which One of the Following Types of Receivables Would NOT