The most reliable evidence from confirmations is obtained when they are sent:
A) at various times throughout the year to different sections of the samples, so that the entire sample is representative of account balances scattered throughout the year.
B) several months before the year- end, so the auditor will have adequate time to perform alternate procedures if they are required.
C) as close to the balance sheet date as possible.
D) at various times throughout the year to the same group in the sample, so that the sample will not have a time bias.

Question

Quizplus · Accepted Answer

Confirmations are most reliable when they are sent as close to the balance sheet date as possible as they provide the most up-to-date information about account balances. This reduces the risk of material misstatements and helps the auditor gain a better understanding of the client's financial position at the end of the reporting period. Sending confirmations at various times throughout the year (A and D) may not provide a complete picture of the client's financial position at the balance sheet date, while sending them several months before year-end (B) may not reflect any significant changes that may have occurred after the confirmation was received.

The Most Reliable Evidence from Confirmations Is Obtained When They