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To reduce the risks associated with accepting electronic responses to requests for confirmation of accounts receivable, an auditor most likely would:

A) validate the sender of electronic information.
B) examine subsequent cash receipts for the accounts in question.
C) consider the electronic responses to the confirmations to be exceptions.
D) mail second requests to the electronic respondents.

User StefanoP
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Final answer:

An auditor would validate the sender of electronic information as the primary method to reduce risks associated with electronic confirmations of accounts receivable. This step is crucial for ensuring the authenticity of the responses. Examining subsequent cash receipts also aids in confirming the validity of the receivables.

Step-by-step explanation:

To reduce the risks associated with accepting electronic responses to requests for confirmation of accounts receivable, an auditor most likely would validate the sender of electronic information. This involves verifying that the responses are from legitimate sources, such as using digital signatures or following up with a phone call to confirm the identity of the sender. It is essential because electronic communications can be intercepted or falsified, and ensuring the validity of the responses helps maintain the integrity of the audit process.

An additional measure the auditor may take is to examine subsequent cash receipts for the accounts in question. This helps to provide further evidence that the receivables are valid and that the amounts confirmed electronically are being settled accordingly. It is a good practice to corroborate electronic confirmations with actual cash flows.

While considering the electronic responses to the confirmations to be exceptions or mailing second requests to the electronic respondents can be part of a thorough audit procedure, they are not the primary methods of reducing the risks associated. Verifying the sender is usually the first step and can be the most effective in mitigating risk.