When accounts receivable are confirmed at an interim date, auditors need not be concerned with:
A)obtaining a summary of receivables transactions from the interim date to the year-end date.
B)obtaining a year-end trial balance of receivables, comparing it to the interim trial balance, and obtaining evidence and explanations for large variations.
C)sending negative confirmations to all the customers as of the year-end date.
D)considering the necessity for some additional confirmations as of the balance sheet date if balances have increased materially.

Question

Quizplus · Accepted Answer

Sending negative confirmations to all the customers as of the year-end date is not a necessary concern when accounts receivable are confirmed at an interim date. Negative confirmations are less commonly used and are not a requirement in this context.

When Accounts Receivable Are Confirmed at an Interim Date, Auditors