PCAOB AS 2310, the Confirmation Process and AU-C 505 State

question 3

Multiple Choice

PCAOB AS 2310, The Confirmation Process and AU-C 505 state there is a presumption that the auditor will request the confirmation of receivables during an audit unless there are special conditions.Which of the following are among these conditions?

• A)Accounts receivable are immaterial to the financial statements.
• B)The use of confirmations would be ineffective as an audit procedure.
• C)The auditor's assessed level of risk of material misstatement at the relevant assertion level is high.
• D)No other planned substantive procedures address the assessed risk.

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Definitions:

Inequality

The unequal access to resources, opportunities, and rights across different segments of society.

Sociological Perspective

An analytical framework for understanding the social world, focusing on how societal forces influence individuals and groups.

Social Experiences

The interactions and events that an individual undergoes in society, which contribute to their personal development and social identity.

Genetic

Relating to genes or heredity, and the influence thereof on the physical and possibly behavioral traits of an organism.