The primary purpose of accounts receivable confirmation is to satisfy the:
A) existence objective.
B) accuracy and cutoff objectives.
C) existence and cutoff objectives.
D) existence, accuracy and cutoff objectives.

Question

Quizplus · Accepted Answer

The primary purpose of accounts receivable confirmation is to satisfy the existence, accuracy and cutoff objectives. Confirmation is a direct communication between the auditor and the entity's customer to obtain evidence about the existence of accounts receivable balances as of the balance sheet date, the accuracy of the information recorded in the accounts, and whether the accounts have been included in the correct accounting period (cutoff). Therefore, D) existence, accuracy and cutoff objectives is the best choice.

The Primary Purpose of Accounts Receivable Confirmation Is to Satisfy