The Most Effective Audit Procedure for Determining If an Account

question 20

Multiple Choice

The most effective audit procedure for determining if an account receivable will be collected is:

• A)Examination of cash collections subsequent to the year end.
• B)Examination of sales invoice(s).
• C)Confirmation of the account.
• D)The review of the customer's file to determine previous collection experience and to check sales orders from the customer for evidence credit approval.

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Definitions:

Positive Outcome

A positive outcome refers to a favorable result or the achievement of desired goals and objectives.

Knee Surgery

A medical procedure involving the knee joint, such as repair of ligaments, meniscus, or total knee replacement, aimed at relieving pain and restoring function.

Psychomotor

Relating to the connection between cognitive functions and physical movement.

Behavioral

Pertaining to actions or reactions of individuals or groups in response to external or internal stimuli.