The Following Audit Procedure Tests Primarily Which Balance- Related Audit

question 42

Multiple Choice

The following audit procedure tests primarily which balance- related audit objective for accounts receivable: Review the minutes of the board of directors' meetings for any indication of pledged receivables.

• A) Existence
• B) Presentation and disclosure
• C) Rights and obligations
• D) Both B and C above

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Definitions:

Independent Events

In probability, events that have no influence on each other's occurrence; the occurrence of one does not affect the probability of the other.

Probability

A measure of the likelihood that a particular event will occur, expressed as a number between 0 and 1.

First Letter

The first letter typically refers to the initial character in a sequence of characters, such as those in an alphabet, word, or string of text.

Federal Holidays

Public holidays established by federal law in a country, during which non-essential federal government offices are closed, and employees are paid for the holiday.