When determining the timing of the accounts receivable confirmations,
A) the receivables cannot be confirmed at an interim date.
B) if accounts receivable are confirmed before year-end, the auditor typically prepares a roll-forward schedule.
C) if the receivables are confirmed at an interim date, they must also be confirmed at year-end.
D) if internal controls are adequate, the accounts receivable must be confirmed at year-end.

Question

Quizplus · Accepted Answer

If accounts receivable are confirmed before year-end, the auditor typically prepares a roll-forward schedule to ensure that all sales from the confirmation date to year-end are included in the accounts receivable balance. However, the option to confirm accounts receivable at an interim date or at year-end depends on the auditor's professional judgment and assessment of the effectiveness of internal controls. There is no requirement to confirm accounts receivable at year-end if internal controls are adequate.

When Determining the Timing of the Accounts Receivable Confirmations