An Auditor Confirmed Accounts Receivable as of an Interim Date

question 1014

Multiple Choice

An auditor confirmed accounts receivable as of an interim date, and all confirmations were returned and appeared reasonable. Which of the following additional procedures most likely should be performed at year-end?

• A) Send confirmations for all new customer balances incurred from the interim date to year-end.
• B) Resend confirmations for any significant customer balances remaining at year-end.
• C) Review supporting documents for new large balances occurring after the interim date, and evaluate any significant changes in balances at year-end.
• D) Review cash collections subsequent to the interim date and the year-end.

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Definitions:

Mismatch

This occurs when there is a lack of alignment or compatibility between two or more things or elements.

Tolerance

The willingness to accept or endure beliefs, behaviors, or practices different from one's own.

Needs

Basic or essential requirements that individuals or systems must have fulfilled to maintain function or achieve goals.

Theory of Work Adjustment

A theory explaining the relationship between individuals and their work environments, focusing on the compatibility between individual needs and skills and job demands and rewards.