Audit and Assurance Practice Exam

True or False: When confirming an account receivable, the request should be directed to the customer's accounts payable department.

1. True

2. False

3. Only if there are discrepancies

4. Depends on company policy

The correct answer is: False

When confirming an account receivable, the request should be directed to the customer's accounts payable department is incorrect. The confirmation process is designed to verify the amounts that a customer owes to the seller; thus, the confirmation should be sent to the customer’s accounts receivable department. This is because the accounts receivable department is responsible for tracking invoices, payments, and outstanding balances. They have access to the accurate records needed to confirm the validity of the account receivable in question. Sending the request to the accounts payable department would likely result in confusion or delays, as this department handles outgoing payments rather than incoming invoices. Therefore, directing the confirmation request to the appropriate department is crucial for an effective and accurate audit process.