When Auditing the i. area on the financial statements sending out confirmations is required, unless the following three criteria are met:

The missing answer is Accounts Receivable.

Explanation:

If a company (say Sender Limited) provides goods and or services to a customer and that customer is yet to pay, the amount due is entered under the Accounts Receivable (AR) portion of Sender Limiteds financial records. In order words Accounts Receivable (AR) is simply money owned to Sender LImited by clients or other debtors.

In a company's balance sheet, the AR is recognized as Current Assets. That is, it is expected that such monies will come in within a year.

When Auditing the accounts receivable area on the financial statements sending out confirmations is required.

It is normal at this point for auditors to requests (electronically or via traditional mail) to

a. customers to verify accounts receivable and

b.  to financial institutions to confirm outstanding promissory notes.

The following are financial areas that may be investigated:

i. cash transactions,

ii. inventory records, and consigned merchandise

iii. long-term contracts,

iv. accounts payable and contingent liabilities, and

v. any transaction that looks suspicious

Cheers

The correct answer to this open question is the following.

Although there are no options attached, we can say the following.

Faults, folding, ridges, mountains, valleys, and volcanic arcs are formed when the plates move because they are the result of the collision of plates in the underground. Scientists have a name for this phenomenon. They called it subduction zones. Here the plates collide creating a formidable force that generates earthquakes. Subduction zones are regions on planet Earth when tectonic plates collide and form new physical structures. For instance, mountain chains are formed throughout the years after these tremendous collisions.