Which of the following statements about confirmations is True?
A) Confirmations are expensive and so are often not used.
B) Confirmations may inconvenience those asked to supply them, but they are widely used.
C) Confirmations are sometimes not reliable and so auditors use them only as necessary.
D) Confirmations are required for several balance sheet accounts but no income statement accounts.

Question

Quizplus · Accepted Answer

Confirmations are indeed widely used in auditing despite potentially inconveniencing those asked to supply them. They are a key audit procedure for verifying the accuracy of information, such as balances with banks or accounts receivable balances with customers.

Which of the Following Statements About Confirmations Is True