How does the auditor gather evidence using the confirmation process?
A)The auditor selects a sample of customer balances from the year-end accounts receivable subsidiary ledger
B)Each of the customers selected for confirmation will be sent a letter asking him to confirm the balance that he is owed by the audit client at year-end
C)Management can choose to send either positive or negative confirmations
D)Positive confirmations request the customer to return the confirmation directly to the auditor if the balance is correct or incorrect
E)Negative confirmations request the customer to return the confirmation directly to management only if the balance is incorrect
F)Both A and D
G)Both A and E

Question

Quizplus · Accepted Answer

The auditor gathers evidence using the confirmation process by selecting a sample of customer balances from the year-end accounts receivable subsidiary ledger (A) and sending positive confirmations that request the customer to return the confirmation directly to the auditor whether the balance is correct or incorrect (D).

How Does the Auditor Gather Evidence Using the Confirmation Process