Which of the following responses to a confirmation of balances at December 31 would be most troubling to an auditor?
A) We paid this amount on December 28.
B) We received these goods on January 2.
C) We returned this amount on December 28 under our standing agreement with the company.
D) This amount is not due until January 15.

Question

Quizplus · Accepted Answer

A return of goods under a standing agreement suggests that the balance might be incorrect or that there is a dispute, which could indicate a potential misstatement in the financial records.

Which of the Following Responses to a Confirmation of Balances