Ajax inc. is an affiliate of the audit client and is, Ask an Expert

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Ajax, Inc. is an affiliate of the audit client and is audited by another firm of auditors. Which of the following is most likely to be used by the auditor of the client to obtain assurance that all guarantees of the affiliate's indebtedness have been detected?

A. Send the standard bank confirmation request to all of the client's lender banks.

B. Obtain written confirmation of indebtedness from the auditor of the affiliate.

C. Review client minutes and obtain a representation letter.

D. Examine supporting documents for all entries in intercompany accounts.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9411885

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