Q23

1. Under which of the following circumstances would using the blank form of confirmation of accounts receivable most likely be preferable to other types of positive confirmations?

   	A.	Recipients are likely to sign other types of positive confirmations without careful investigation.
   	B.	Prior years audits indicate a pattern of overstatement of account balances.
   	C.	The auditors combined assessed level of control risk and inherent risk is low.
   	D.	Accounts receivable are immaterial to the entitys financial statements.