What is the primary assertion being addressed by confirmation of receivables?Select one:a.accuracyb.existencec.gross valuationd.completeness

Break Down the Problem

1. Understand the context of the question, which pertains to auditing and the confirmation of receivables.
2. Identify what confirmation of receivables typically aims to verify.
3. Evaluate the options given to find the best answer.

Relevant Concepts

1. Confirmation of receivables is a procedure used in auditing to verify that amounts owed by customers are valid and accurate.
2. The primary assertions in this context relate to specific criteria the auditor evaluates.

Analysis and Detail

1. Accuracy: Ensures that recorded amounts are correct.
2. Existence: Confirms that the receivables actually exist and are owed by customers.
3. Gross Valuation: Relates to whether the amounts are recorded at the right value.
4. Completeness: Ensures that all receivables that should be recorded are included.

Among these assertions, existence is paramount in the context of confirmation of receivables, as it demonstrates that the amounts reported in the financial statements are not overstated.

Verify and Summarize

• Auditing standards emphasize confirming that the receivables reported are legitimate and owed.
• Thus, the primary assertion when confirming receivables deals fundamentally with the existence of the receivables.

Final Answer

b. existence