Auditing · Receivables Circularisation
Which of the following is a key benefit of carrying out a trade receivables circularisation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It completely eliminates the need for any substantive testing of sales transactions.
- 2It guarantees 100% audit efficiency since all customers are legally required to respond.
- 3It provides sufficient appropriate evidence over all financial statement assertions.
- 4It provides reliable audit evidence from an independent external source.✓
Correct answer
It provides reliable audit evidence from an independent external source.
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