The primary consideration when planning whether to send confirmations of accounts receivable before the balance sheet date is the
A) Type of confirmation to be used.
B) Client's internal control over transactions affecting receivables.
C) Availability of staff auditors.
D) Number of customer accounts.

Question

Quizplus · Accepted Answer

The primary consideration when planning whether to send confirmations of accounts receivable before the balance sheet date is the client's internal control over transactions affecting receivables. This is because a stronger internal control over receivables would indicate that there is less risk of misstatement, and therefore less need for confirmation.

The Primary Consideration When Planning Whether to Send Confirmations of Accounts