Question

Which accounts should be confirmed with outside sources? Briefly describe from whom they should be confirmed and the information that should be confirmed.

a) Sales - Confirmations should be obtained from customers, verifying the accuracy of reported sales transactions and payment terms.
b) Trade Accounts Payable - Confirmations should be obtained from suppliers, validating the accuracy of outstanding balances and terms of payment.
c) Property, Plant, and Equipment - Confirmations should be obtained from appraisers to verify the fair market value of tangible assets.
d) Accrued Liabilities - Confirmations should be obtained from creditors to verify the accuracy of outstanding obligations and terms of payment.

Answer 1

Sales, Trade Accounts Payable, Property, Plant, and Equipment, and Accrued Liabilities should be confirmed with outside sources to verify accuracy of transactions, balances, and terms of payment.

Step-by-step explanation:

Sales - Confirmations should be obtained from customers to verify the accuracy of reported sales transactions and payment terms. Trade Accounts Payable - Confirmations should be obtained from suppliers to validate the accuracy of outstanding balances and terms of payment. Property, Plant, and Equipment - Confirmations should be obtained from appraisers to verify the fair market value of tangible assets. Accrued Liabilities - Confirmations should be obtained from creditors to verify the accuracy of outstanding obligations and terms of payment.