An Auditor Contacts an Accounts Receivable of the Client Directly

question 12

Multiple Choice

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

• A) analytical procedure.
• B) test of control.
• C) test of details of balances.
• D) tests of details of transactions.

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Definitions:

Import Quotas

Restrictions set by a government on the quantity of goods that can be imported into a country.

Net Exports

The value of a country's total exports minus its total imports, representing the net effect of foreign trade on an economy.

Capital Flight

A large and sudden reduction in the demand for assets located in a country

Interest Rate

The percentage of a loan that is applied as interest for the borrower, usually shown as a yearly rate.