In the confirmation of accounts receivable, the auditor would most likely
A) Randomly select a representative sample of accounts for confirmation.
B) Seek to obtain positive confirmations for at least 50% of the total dollar amount of the receivables.
C) Require confirmation of all receivables from agencies of the federal government.
D) Require that confirmation requests be sent within one month of the fiscal year-end.

Question

Quizplus · Accepted Answer

The auditor would most likely randomly select a representative sample of accounts for confirmation to obtain sufficient and reliable audit evidence. This approach ensures that the auditor reviews a variety of different types of accounts and customers, minimizing the risk of overlooking irregularities or errors in the financial statements. Additionally, selecting a representative sample provides an efficient means of testing the overall accuracy and completeness of the accounts receivable balance.

In the Confirmation of Accounts Receivable, the Auditor Would Most