Confirmation is most likely to be a relevant form of evidence with regard to assertions about accounts receivable when the auditor has concerns about the receivables'
A) valuation.
B) classification.
C) existence.
D) completeness.

Question

Quizplus · Accepted Answer

Confirmation provides evidence about the existence of accounts receivable, which is particularly relevant when the auditor is concerned that the receivables may not actually exist. Valuation concerns would typically be addressed through analytical procedures and substantive testing, while classification and completeness concerns would also be more directly addressed through substantive testing.

Confirmation Is Most Likely to Be a Relevant Form of Evidence