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Before sending positive confirmation requests to a sample of an entitys customers to verify the entitys accounts receivable, a member of the audit team should

Before sending positive confirmation requests to a sample of an entitys customers to verify the entitys accounts receivable, a member of the audit team should verify that

a. The subsidiary ledger for accounts receivable supports the general ledger balance at the date chosen for confirmation.

b.There are no prematurely recorded or improper accounts receivable items.

c.There are no accounts receivable items that should have been recorded that were not recorded.

d.There are no accounts receivable items that have been pledged as collateral for the entitys debts.

e.There are no material uncollectible customer account balances.

Substantive tests of transactions most likely would be performed by the continuing auditor

a.When the auditor has performed analytical procedures that suggest the account balance involved is consistent with the auditors expectations.

b.When the auditor has performed risk assessment procedures that suggest a low level of risk of material misstatement.

c.When the account involved is material and has a high level of activity.

d.When the account involved is material and has a low level of activity.

e.When the account involved is immaterial.

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