In the confirmation of accounts receivable,the auditor would most likely
A) randomly select a representative sample of accounts for confirmation.
B) seek to obtain positive confirmations for at least 50% of the total dollar amount of the receivables.
C) require confirmation of all receivables from agencies of the federal government.
D) require that confirmation requests be sent within one month of the fiscal year-end.

Question

Quizplus · Accepted Answer

The auditor would likely randomly select a representative sample of accounts for confirmation in order to obtain a reasonable assurance that there are no material misstatements in the accounts receivable balance. This approach would allow the auditor to obtain sufficient evidence without incurring excessive time and cost.

In the Confirmation of Accounts Receivable,the Auditor Would Most Likely