While Performing Interim Audit Procedures of Accounts Receivable, Numerous Unexpected

question 41

Multiple Choice

While performing interim audit procedures of accounts receivable, numerous unexpected errors are found resulting in a change of risk assessment. Which of the following audit responses would be most appropriate?

• A)Move detailed analytical procedures from year end to interim.
• B)Increase the dollar threshold of vouching customer invoices.
• C)Send negative accounts receivable confirmations instead of positive accounts receivable confirmations.
• D)Use more experienced audit team members to perform year-end testing.

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Definitions:

Tax-exempt Interest

Interest income that is not subject to federal income tax, often received from bonds issued by state and municipalities.

Bonds Issued

Debt securities released by entities such as corporations or governments to raise capital.

Local Government

The administration governing a specific local area such as a city, town, or county, responsible for providing local services and infrastructure and may have its own tax collection policies.

Behavioral Leadership

A leadership style that focuses on understanding and managing the actions and interactions of team members to effectively lead an organization.