This Year Is the First Time That, as a Normal

question 14

Multiple Choice

This year is the first time that, as a normal practice in a client's business, accounts receivable may be pledged, assigned, factored or sold at discount. The audit procedure which would disclose these practices would be:

• A) a review of the minutes of the board of directors' meetings.
• B) discussions with the client.
• C) examination of correspondence files.
• D) all of the above

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Preconscious

The part of the mind that contains thoughts, feelings, and memories not currently in consciousness but can be easily accessed.

Id

A component of Sigmund Freud's psychoanalytic theory, representing the unconscious part of the psyche that operates on the pleasure principle and seeks immediate gratification.

Impulse Control

The ability to resist or delay an impulse, drive, or temptation to act.