According to auditing standards, accounts receivable confirmations are required to be used in which of the following situations?
A) On every audit engagement.
B) If the client agrees in writing to the procedure.
C) If the balance is material.
D) If environmental risk is low.

Question

Quizplus · Accepted Answer

According to auditing standards, accounts receivable confirmations are required to be used if the balance is material. They may also be used if the auditor determines that it is necessary to obtain sufficient appropriate evidence. The other options listed are not relevant factors for determining the use of accounts receivable confirmations.

According to Auditing Standards, Accounts Receivable Confirmations Are Required to Be