Accounting · Audit Evidence and Procedures
Which TWO of the following circumstances would make the use of negative confirmation requests appropriate when performing a direct confirmation of trade receivables? 1. The client has strong internal controls over sales and receivables2. The auditor expects a high level of misstatement in receivables3. The auditor has not obtained other audit evidence regarding receivables4. There are a large number of small receivable balances
- 11 and 4✓
- 22 and 3
- 31 and 2
- 41 and 3
Correct answer
1 and 4
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