If an Auditor Has Determined That Inherent Risk for Accounts

question 54

Multiple Choice

If an auditor has determined that inherent risk for accounts receivable is high and wishes to verify the balance as accurate, the best corroborating evidence would be ________.

• A)a phone call to the client
• B)a negative confirmation sent to the entity in question
• C)a positive confirmation sent to the entity in question
• D)inspection of supporting documents relating to the receivables transactions

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Definitions:

Simultaneous Game

A game theory scenario where all players make decisions or select strategies at the same time without knowledge of the other players' choices.

Simultaneous Game

A strategic game where all players make their decisions or moves at the same time without knowing their opponents' actions.

Best Response

In game theory, it is the strategy that yields the highest payoff for a player, given the strategies chosen by other players.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, given the strategies of all other players, resulting in no incentive for unilateral shifts.