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 report understatement errors because they are less likely to notice or be concerned about amounts they owe being understated, which affects the completeness assertion.

The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence