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Confirmation of accounts receivable is a generally accepted auditing procedure. The presumption is that an auditor will request confirmation of accounts receivable. Confirmation is necessary
Confirmation of accounts receivable is a generally accepted auditing procedure. The presumption is that an auditor will request confirmation of accounts receivable. Confirmation is necessary when A. Based on prior years audit experience, response rates will be inadequate. B. The combined assessed level of inherent and control risk is high. C. Based on experience with similar engagements, responses are expected to be unreliable. D. The accounts receivable are immaterial.
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