In work on accounts receivable, use of confirmations is of great importance. Required: A. What is an

Question:

In work on accounts receivable, use of confirmations is of great importance.

Required:

A. What is an audit confirmation?

B. What characteristics should an audit confirmation possess if an auditor is to consider it as sufficient appropriate audit evidence?

C. Distinguish between a positive and a negative accounts receivable confirmation.

D. In confirming a client’s accounts receivable, what characteristics should be present in the accounts if the auditor is to use negative confirmations?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...