Question
The financial records of the Shrewsbury Inc. show that customer Brosnan owes $4,100 on an account receivable. An independent audit is being carried out and
The financial records of the Shrewsbury Inc. show that customer Brosnan owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Brosnan. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here?
The financial records of the Shrewsbury Inc. show that customer Brosnan owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Brosnan. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here?
The account was not yet due
The account was not with a related party
Inherent risk was particularly high for accounts receivable
Control risk was particularly low for accounts receivable
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Accounting And Auditing Research Tools And Strategies
Authors: Thomas R. Weirich, Thomas C. Pearson, Natalie Tatiana Churyk
10th Edition
1119698138, 9781119698135
