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An Auditor Contacts an Accounts Receivable of the Client Directly

question 12

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An auditor contacts an accounts receivable of the client directly in order to confirm the balance owing. This is an example of:


Definitions:

Lessee

The user of an asset in a leasing agreement. The lessee makes payments to the lessor.

Title

A legal term denoting ownership rights over property, assets, or legal documents.

CRA

An abbreviation that can stand for Credit Rating Agency, an organization providing assessments of the creditworthiness of securities or firms.

Fair Market Value

The price that property would sell for on the open market, considering both the seller and buyer are acting knowledgeably and without undue pressure.

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