DeVry ACCT 444 Week 1-5 Complete Quizzes

4. (TCO 6) Which of the following statements about confirmation is true? (Points : 3)
Confirmations are expensive and so are often not used.
Confirmations may inconvenience those asked to supply them, but they are widely used.
Confirmations are sometimes not reliable and so auditors use them only as necessary.
None of the above statements are true.
Chapter 7
4. (TCO 6) Three common types of confirmations used by auditors are (1) negative
confirmations where only a response is requested if the debtor disagrees with the amount, (2) positive
confirmations with a request for information where the debtor is requested to respond and to include
their believed balance, and (3) positive confirmations with the information included where the debtor is
requested to respond and to confirm the balance we give them. If they were placed in the order of
their competence, from highest to lowest, the sequence would be (Points : 3)
3, 1, 2.
1, 2, 3.
3, 2, 1.
2, 3, 1.
Chapter 7
4. (TCO 6) Traditionally, confirmations are used to verify (Points : 3)
individual transactions between organizations, such as sales transactions.
bank balances and accounts receivables.
fixed asset additions.
All of the above
Chapter 7
5. (TCO 7) The major concern when using nonfinancial data in analytical procedures is the
(Points : 3)
accuracy of the nonfinancial data.
source of the nonfinancial data.