The correct answers are: It is advisable to include nil balances, old balances and credit balances in the sample selected for confirmation; Confirmations of accounts receivable provide evidence as to the accuracy of the receivables figure, but not as to its recoverability; Confirmations of accounts receivable provide evidence as to the effective functioning of controls over receivables and in relation to certain frauds relating to receivables.

It is advisable to include nil balances, old balances and credit balances in the sample selected for confirmation because such amounts may be misstated.

Confirmations of accounts receivable provide evidence as to the accuracy of the accounts receivable figure, but not as to its recoverability (customers agree that they owe the money, but they may not be able to pay).

Confirmations of accounts receivable provide evidence as to the effective functioning of controls over receivables (if the receivables figures are inaccurate, controls are likely to be poor). Frauds such as 'window dressing' and 'teeming and lading' are sometimes highlighted by confirmations of accounts receivable.