Choose the one correct answer 6. In auditing the client’s receivables, the auditor decided to select entries in the sales journal and trace them back to the sales invoice, delivery receipt and the sales order. This procedure is consistent in corroborating which of the following assertion? * A. Valuation B. Existence C. Completeness D. Rights and Obligations e. None of the above 9. Which of the following statements is valid relating to confirmation of accounts receivable? *
Choose the one correct answer
6. In auditing the client’s receivables, the auditor decided to select entries in the sales journal and trace them back to the sales invoice, delivery receipt and the sales order. This procedure is consistent in corroborating which of the following assertion? *
A. Valuation
B. Existence
C. Completeness
D. Rights and Obligations
e. None of the above
9. Which of the following statements is valid relating to confirmation of
a. A positive confirmation provides more reliable evidence than the negative confirmation because the auditor can perform follow-up procedures if no response is received from the debtor
B. A negative form of confirmation is preferable to use when individual account balances of customers are relatively large
c. In positive confirmation, failure to reply must be regarded as a correct response, even though the debtor may have ignored the confirmation request
d. An auditor must consider using the negative form of confirmation when there is reason to believe that there may be a substantial number of accounts in dispute or with inaccuracies or irregularities
e. None of the above
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