To Validate Sales Revenue and Accounts Receivable, the Auditor Could

question 113

Multiple Choice

To validate sales revenue and accounts receivable, the auditor could _______.

• A)send confirmations to accounts payable holders
• B)attempt to reconcile the differences between gross and net sales
• C)use the allowance for doubtful accounts account as a substantive test
• D)request that the internal audit function sign off on its accuracy

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Definitions:

Competitive Analysis

Examination of competitors and their products or services to identify strengths and weaknesses relative to one's own business.

Visual Picture

Concerns the representation of objects, scenes, or ideas in a form visible to the eye, such as photographs, drawings, or images on a screen.

Products

Items or services offered to the market for sale, consumption, or use, fulfilling a need or want.

Global Segmentation

The practice of dividing a worldwide market into smaller segments of consumers who share similar needs, characteristics, or behaviors.