27. Which of the following would indicate the need to use positive accounts receivable confirmation requests? A large population consisting of small balances. Good internal control over accounts receivable. Most accounts are with large reputable companies. A large number of accounts receivable are in dispute.

28. To obtain the best evidence regarding the completeness of recorded accounts receivable, the auditors: Trace a sample of the bills of lading to sales invoices. Confirm a sample of accounts payable. Review the aging of accounts receivable. Trace a sample of recorded sales to shipping documents.

29. For effective internal control, the billing function should not be performed by the: Sales department. Accounting department. Finance department. Information Processing department.

30. Which procedure would be of most assistance to an auditor discovering a large credit sale that has erroneously been recorded twice? Footing the sales journal. Confirming accounts receivable. Tracing the total sales in the sales journal to the general ledger. Observation of the physical inventory count at year-end.