Auditors Use Negative Confirmation for Which of the Following

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Require that confirmation requests be sent as soon as possible after fiscal year-end. D The auditors should withdraw from the.

Solved Q19 Negative Confirmation Of Accounts Receivable Is Chegg Com

Negative confirmation is an audit procedure that we perform to confirm the clients balances.

. The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests. B The auditors should qualify their opinion because the client must perform a complete count of the inventory. Has assessed the risk of material misstatement as low.

LO 16 - 4 AACSB. Describe three conditions which should exist for the auditors to use the negative form of requestb. Confirmation of accounts receivable is presumptively a mandatory audit procedure.

Auditors may use positive andor negative forms of confirmation requests. Accounts receivable is made up of a large number of small accounts. The Confirmation Process 1897 AU Section 330 The Conﬁrmation Process Supersedes section 3310308.

A negative confirmation is rarely used with a lender since auditors want to be very sure about the ending debt balances reported by their clients. C The auditors should increase the extent of their test counts to compensate for the use of a statistical technique. Of the following which combination is it most likely that the auditors will use.

The positive form for receivables and the negative form for payables. Of the following which combination is it most likely that the auditors will use. 31 The auditor use negative confirmation requests as the sole substantive audit procedure to address an assessed risk of material misstatements at the assertion level if a The auditor has assessed the risk of material misstatement as high and has obtained sufficient appropriate sudit evidence regarding the operating effectiveness of controls relevant to the assertion.

The combination of inherent risk and control risk is high. Auditors may use positive andor negative forms of confirmation requests. 12 If the auditor decides not to confirm accounts receivable the auditor should.

Negative Confirmation A negative confirmation the recipient is requested to reply only when the recipient disagrees with the stated amount. A substantial number of accounts are in disputes. Of the following which combination is it most likely that the auditors will use.

The auditor should consider performing other substantive procedures to supplement the use of negative conﬁrmations. Select all applicable answer choices. It may be appropriate for an auditor to include negative conﬁrmation.

An auditor most likely will use. However in this type of confirmation we require the recipients to respond only if they dont agree with the indicated balances stated in the. The positive form used for large balances and the negative form for the small balances.

Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful. Positive and negative confirmations Diff. D include copies of customer sales invoices in the audit files.

Negative confirmations are generally appropriate when internal control is adequate balances are small and the auditor has no reason to believe that debtors will not return the confirmation request. In contrast a negative confirmation requests the recipient to respond only if the balance as stated on the confirmation is incorrect. The positive form for accounts in dispute and the negative form for.

In performing this procedure auditors use positive confirmation requests or negative confirmation requests or a combination of botha. Negative confirmations provide less persuasive audit evidence than positive confirmations. Sales involve special terms or side-agreements confirmation.

In the confirmation of accounts receivable the auditor would most likely. Like positive confirmation we perform negative confirmation by using formal letters or documents to request the response from the recipients. The auditor shall not use negative confirmation requests as the sole substantive audit procedure to address an assessed risk of material misstatement at the assertion level unless What of the following criteria are present.

C document the reasons for such a decision in the audit files. MediumBriefly describe the circumstances in which it is acceptable to use negative confirmation requests. A combination of the two forms with the positive form used for trade receivables and the negative form for other receivables.

It is acceptable to use negative confirmation requests only when all of the following circumstances are present. A combination of the two forms with the positive form used for large balances and the negative form for the small balances. A always use alternative procedures to audit the accounts receivable.

Auditors may use positive andor negative forms of confirmation requests for accounts receivable. The positive form for accounts in dispute and the negative form for. They are also commonly used with suppliers to confirm small-dollar account balances.

Auditors may use positive andor negative forms of confirmation requests for accounts receivable. Auditors may use positive andor negative forms of confirmation requests for accounts receivable. An auditor most likely will use The positive form to confirm all balances regardless of size.

Will not consider the requests. Auditor should perform follow up procedures if the debtor does not reply. The positive form for receivables and the negative form for payables B.

B include copies of customer statements in the audit files. Require confirmation of all receivables from agencies of the federal government. The positive form for small balances and the negative form for the large balances C.

Send negative confirmations when the assessed risk of material misstatement is high. The positive form for small balances and the negative form for the large balances. Positive confirmations are more reliable because the auditor can perform follow - up procedures if a response is not received from the customer.

Accordingly the auditor shall not use negative confirmation requests as the sole substantive audit pr ocedure to address an assessed risk of material misstatement at the assertion level unless all of the following are present. Negative confirmations in contrast request that a debtor respond to the auditor only if the balance in an attached statement is incorrect. A negative or positive confirmation is not restricted for use with a client companys customers.

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Negative Confirmation Overview Types When To Use