The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because:
A)many customers merely sign and return the confirmation without verifying its details.
B)recipients usually respond only if they disagree with the information on the request.
C)customers may not be inclined to report understatement errors in their accounts.
D)auditors typically select many accounts with low recorded balances to be confirmed.

Question

Quizplus · Accepted Answer

Customers may not have an incentive to report if their account balance is understated, as this would not be in their financial interest, making confirmations less reliable for testing completeness.

The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence