Auditors are concerned with the addresses provided for customers in the confirmation of accounts receivable because of which of the following reasons?
A) Confirmations are selected based upon zip codes.
B) A P.O. Box is more reliable than a street address.
C) Confirmations should be sent only to business addresses and not residential.
D) The address may be routed to the client for retrieval and fraudulent signing.

Question

Quizplus · Accepted Answer

Auditors are concerned with the addresses provided for customers in the confirmation of accounts receivable because the confirmation may be routed to the client for retrieval and fraudulent signing. It is important to ensure that the confirmation is being sent to the correct address and that it is completed by the customer, not by the client. This can help to prevent fraud and ensure the accuracy of the financial statements.

Auditors Are Concerned with the Addresses Provided for Customers in the Confirmation