An Auditor Should Perform Alternative Procedures to Substantiate the Existence

question 12

Multiple Choice

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when

• A)There is no response to a positive confirmation request.
• B)There is no response to a negative confirmation request.
• C)Collectability of the receivables is in doubt.
• D)Pledging of the receivables is probable.

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Definitions:

Different Departments

Varied sections within an organization, each with their own set of functions and responsibilities, contributing to the overall objectives of the organization.

Span Of Control

The number of direct reports to a given manager.

Direct Reports

Employees who report directly to a manager or supervisor.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that links the diverse parts of an organization.