Which of the following statements would an auditor most likely add to the negative form of confirmations of accounts receivable to encourage timely consideration by the recipient?
A) "This is not a request for payment; remittances should not be sent to our auditors in the enclosed envelope."
B) "Report any differences on the enclosed statement directly to our auditors; no reply is necessary if this amount agrees with your records."
C) "If you do not report any differences within 15 days, it will be assumed that this statement is correct."
D) "The following invoices have been selected for confirmation and represent amounts that are overdue."

Question

Quizplus · Accepted Answer

Including a statement such as "If you do not report any differences within 15 days, it will be assumed that this statement is correct" in the negative form of confirmations encourages timely consideration by the recipient by setting a deadline for response. This may prompt the recipient to review the confirmation in a more timely manner, rather than delaying a response indefinitely. Options A and B are standard language used in negative confirmations and do not provide additional encouragement for timely consideration. Option D is not appropriate for a negative confirmation, as it seeks to confirm overdue amounts rather than simply confirming the balance due.

Which of the Following Statements Would an Auditor Most Likely