When an Audit Team Does Not Receive a Response on a Positive

question 40

Multiple Choice

When an audit team does not receive a response on a positive accounts receivable confirmation, auditors should do all of the following except:

• A)send a second request.
• B)do nothing for immaterial balances.
• C)examine shipping documents.
• D)examine client correspondence files.

---

Definitions:

Adjustable-Rate Mortgages

A type of mortgage in which the interest rate applied to the outstanding balance varies throughout the life of the loan.

Immunization

A strategy in bond portfolio management aimed at minimizing the impact of interest rate changes on the portfolio's value while ensuring that the portfolio meets future cash flow needs.

Asset Portfolio

A collection of various types of investments held by an individual or institution.

Liabilities

Financial obligations or debts owed by a company or individual to creditors, typically categorized as current or long-term.