In the Sales and Collection Cycle, the Results of the Tests

question 48

Multiple Choice

In the sales and collection cycle, the results of the tests of controls determine:

• A) whether positive or negative confirmations should be used for this engagement.
• B) whether assessed control risk for sales and cash receipts needs to be revised.
• C) if tests of details of balances need to be performed.
• D) the extent to which planned detection risk is satisfied or each accounts receivable objective.

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