Question

Which of the following statements regarding confirmations is TRUE? Auditing standards generally require the use of...

Which of the following statements regarding confirmations is TRUE?

Auditing standards generally require the use of confirmations for a sample of accounts receivable

They should be received directly by the client

Confirmation responses received via email or fax are not considered to be reliable evidence

They should be prepared and mailed by the client

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Answer #1

1. Auditing standards generally require the use of confirmations for a sample of accounts receivable

They should be received directly by the client - THIS STATMENT IS INCORRECT

Because confirmations should be received directly by the auditor

2. Confirmation responses received via email or fax are not considered to be reliable evidence

They should be prepared and mailed by the client - THIS STATMENT IS CORRECT

REASON :- There may be situations in which the respondent, because of time or other considerations, responds to a confirmation request other than in a written communication mailed to the auditor. When such responses are received, additional evidence may be required to support their validity.

Please UPVOTE if the answer is satisfactory

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