When a Customer Fails to Reply to a Confirmation and the Auditor

question 71

Multiple Choice

When a customer fails to reply to a confirmation and the auditor is unable to obtain other evidence about the existence of the receivable, _______.

• A)the auditor must conclude that these balances are 100% misstatements and project the misstatements on the remaining portion of the population
• B)the auditor must conclude that these balances are 50% misstatements and project the misstatements on the remaining portion of the population
• C)the auditor must conclude that these balances are 100% misstatements and project the misstatements on the remaining portion of the sample
• D)the auditor should notify management of the auditor's intention to withdraw from the engagement

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Definitions:

Organizational Citizenship Behaviors

Represent the voluntary actions of employees that contribute to the organizational well-being beyond the scope of their formal duties.

Affect

A term referring to the underlying experience of feeling, emotion, or mood.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Social Learning

The process of acquiring new behaviors and knowledge by observing and imitating others.