PA Is Auditing a Client Where the Accounts Receivable Are

question 9

Multiple Choice

PA is auditing a client where the accounts receivable are in worse shape than last year: many accounts are significantly overdue.How would this fact be dealt with in the audit risk model?

• A)increase inherent risk for accounts receivable
• B)decrease inherent risk for accounts receivable
• C)increase control risk for accounts receivable
• D)decrease control risk for accounts receivable

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Definitions:

Junior Engineer

An entry-level or early-career engineer who typically works under the supervision of more experienced engineers.

Career Development

The ongoing process of managing one's work experience, learning, and training to progress in a chosen career path.

Unemployment Levels

The percentage of the labor force that is without work but available for and seeking employment.

Recruitment

The process of finding, attracting, and selecting candidates for employment.