The blank form of accounts receivable confirmations may be inefficient because

The blank form of accounts receivable confirmations

  • Hunan University
  • ECONOMY no
  • Test Prep
  • sunweiming12366
  • 30
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58. The blank form of accounts receivable confirmations may be inefficient because A.Shipping documents need to be inspected.B.Recipients may sign the forms without proper investigation.C.More nonresponses to the requests are likely to occur.
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Answer (C) is correctA positive confirmation request asks for a reply in all cases. It may ask the confirming parties to state whether they agree with the information given or to provide information. Thus, positive confirmation requests obtain evidence only when responses are received. Blank confirmation requests are used to reduce the risk that recipients will respond without verifying the information. They omit the amount or other information to be confirmed and ask the confirming parties to fill in the information. The disadvantage is a lower response rate because of the additional effort required.D.Subsequent cash receipts need to be verified.. 59. During the confirmation of accounts receivable, an auditor receives a confirmation via the client’s fax machine. Whichof the following actions should an auditor take? . 60. When an auditor decides to confirm accounts receivable balances rather than individual invoices, it most likely wouldbe beneficial to include with the confirmations .
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