a. If audit risk for accounts receivable is determined to be high, then auditors should perform confirmations at an interim date as opposed to year-end.

True or false?

b. All of the following true regarding the use of negative confirmation requests except:

1. Lack of reply from customer is considered satisfactory evidence.
2. Should be used for large number of accounts with small balances.
3. Should be used when internal controls are operating effectively.
4. Should be used when high exceptional rate is expected.

c. Using credit memorandum for authorization of adjustments to sales and receivables is a control procedure associated with completeness of accounts receivable.

True or false?

d. Confirmation from a holder of a note receivable is considered an acceptable alternative to securing confirmation from the maker of the note.

True or false?

e. Perpetual inventory records, maintained by the storekeeper, are needed to control the issuance of merchandise.

True or false?

f. For better internal controls, accounting receivable that are written off should continue to receive statements.

True or false?