Which of the following is not true about the confirmation of accounts receivable? A. Confirmation requests should bear the auditors' return address. B. Confirmation requests should be signed by the auditors. C. Confirmation requests should be mailed directly by the auditors. D. Confirmation requests should include a return envelope addressed to the office of the auditors.

Question

Business

Amelie Luna

17 April, 14:29

Which of the following is not true about the confirmation of accounts receivable? A. Confirmation requests should bear the auditors' return address. B. Confirmation requests should be signed by the auditors. C. Confirmation requests should be mailed directly by the auditors. D. Confirmation requests should include a return envelope addressed to the office of the auditors.

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Answers (1)

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Micheal Petty · Answer 1

B

Explanation:

A. The return address needs to be included in order for the purchaser/seller to directly confirm the accounts receivable without the client having involvement.

C. Similar to A, the confirmation requests should be sent directly to the auditor to ensure that no client involvement is included.

D. Similar to A and C, the key to confirmations is that the client has no involvement in the confirmation, to reduce and eliminate the risk of meddling.