Auditors are concerned with the addresses provided for customers in the confirmation of accounts receivable because
A)confirmations are selected based upon zip codes.
B)a P.O.Box is more reliable than a street address.
C)confirmations should be sent only to business addresses and not residential.
D)the address may be routed to the client for retrieval and fraudulent signing.

Question

Quizplus · Accepted Answer

The address provided in the confirmation of accounts receivable may be routed to the client for retrieval and fraudulent signing. This puts the reliability of the confirmation responses into question, which is a concern for auditors. Therefore, auditors need to ensure that the confirmation is sent to the correct address and that the response received is authentic.

Auditors Are Concerned with the Addresses Provided for Customers in the Confirmation