It may NOT necessary for an auditor to confirm accounts receivable when:
A) the auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable.
B) the combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence.
C) accounts receivable are immaterial.
D) any one of the above three is present.

Question

Quizplus · Accepted Answer

An auditor may decide not to confirm accounts receivable if any of the conditions in A, B, or C are present, as they provide valid reasons for not using confirmations as evidence.

It May NOT Necessary for an Auditor to Confirm Accounts