Final answer:
Confirmation of accounts receivable provides some assurance against manipulation like lapping, and when seeking a loan, providing a financial history, offering collateral, and presenting a strong business plan are ways to reassure a bank about repayment.
Step-by-step explanation:
To address the core question 'Confirmation of accounts receivable provides some assurance that no lapping or other manipulation affecting accounts receivable is being carried on': This statement is generally true. Confirmation of accounts receivable is an audit procedure that involves the auditor getting direct verification from the debtors about the balance they owe to the company. This process helps to verify the existence and amount of the receivables and provides some level of assurance that the receivables are free from material misstatement, which could include lapping or other manipulations.
Now, in terms of addressing the situation where someone is looking for a loan and needs to reassure the bank about their intention and ability to repay the loan, several strategies can be employed. One effective way is to provide a detailed financial history, which demonstrates the borrower's past ability and willingness to pay off debts. Another method is to offer collateral for the loan, thereby reducing the risk to the lender because there is an asset to fall back on in case of default. Lastly, a potential borrower might also present a strong business plan or financial projections that show a clear ability to repay the loan based on expected future income. These methods can help to mitigate the imperfect information that the bank has and increase the chances of securing a loan.