Day: July 9, 2026

To gather sufficient and appropriate evidence, the auditor may use external confirmation requests.

For the following statement regarding external confirmation requests, select whether it is of no relevance, depends on the type of business, or is true or false.

• A sample of confirmation requests drawn from the client’s list of balances is more appropriate for receivables than for payables.

Select ONE answer:

1. No relevance
2. Depends on the type of business
3. False
4. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – A sample taken from a list of receivables is more effective than for payables, as in this way testing the balance for overstatement is carried out directly. For payables, the auditor’s key concern is that of understatement and testing a sample from the payables listed will not test understatement.

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