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Which of the following statements about confirming accounts...

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Accounting

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Which of the following statements about confirming accounts receivable (A/R) and accounts payable (A/P) is true? The assertion with the highest risk of material misstatement for A/R and A/P is Existence. A/R and A/P are always confirmed regardless of the materiality of the balance or risks of material misstatement. Positive and negative confirmations are always used to audit A/R and A/P. A/R confirmations are more likely to include the client's balance than A/P confirmations. A client that recently loosened its credit-granting policies uses percentages of aging categories as the basis for the initial calculation of the allowance for doubtful accounts. When auditing the allowance for doubtful accounts, the auditor must perform procedures to ensure that... The percentages of aging categories used to calculate the allowance for the current year are identical to prior years. The client's aging categories are consistent with industry averages. The percentages of aging categories used to calculate the allowance were not impacted by managerial judgment. The outstanding invoices were aged correctly since the aging is the basis for calculating the allowance

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