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Questions and Answers
What is the primary purpose of sending accounts receivable confirmation letters to a client's customers?
What is the primary purpose of sending accounts receivable confirmation letters to a client's customers?
- To confirm the existence of the client's accounts receivable (correct)
- To verify the completeness of the client's transactions
- To assess the valuation of the client's assets
- To evaluate the client's internal control systems
Which audit procedure is most directly related to sending accounts receivable confirmation letters?
Which audit procedure is most directly related to sending accounts receivable confirmation letters?
- Audit of inventory
- Audit of accounts payable
- Audit of cash
- Audit of accounts receivable (correct)
What is the primary benefit of sending accounts receivable confirmation letters to a client's customers?
What is the primary benefit of sending accounts receivable confirmation letters to a client's customers?
- Increased efficiency in the audit process
- Enhanced audit evidence about the existence of accounts receivable (correct)
- Better internal control over the client's accounts receivable
- Improved accuracy of financial statements
Why do auditors use accounts receivable confirmation letters?
Why do auditors use accounts receivable confirmation letters?
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What is the relationship between sending accounts receivable confirmation letters and the auditor's assessment of the client's financial statements?
What is the relationship between sending accounts receivable confirmation letters and the auditor's assessment of the client's financial statements?
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