When practical and reasonable, U.S. auditing standards require the confirmation of
A) individual transactions between organizations, such as sales transactions.
B) accounts receivable.
C) fixed asset additions.
D) payroll expenses.

Question

Quizplus · Accepted Answer

U.S. auditing standards require the confirmation of accounts receivable, as it is a critical area prone to fraud and misstatement. Confirmation helps the auditor verify the accuracy and existence of recorded receivables. The confirmation process involves sending a letter or email to the customers confirming the amount and terms of the receivable.

When Practical and Reasonable, U