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.

---

Definitions:

Multiple Regression Analysis

A statistical process that involves using a range of explanatory variables to predict the behavior of a dependent variable.

Normally Distributed

The distribution is noted for its symmetry about the mean, with a higher concentration of data points near the mean and fewer occurrences as the distance from the mean increases.

Explanatory Variables

Variables in a statistical model that are used to explain variation in the response variable; also known as independent variables.

Response Variable

The variable in a study that responds or is presumed to change due to the influence of another variable.