Under Which of the Following Circumstances Would the Use of the Blank

question 298

Multiple Choice

Under which of the following circumstances would the use of the blank form of confirmations of accounts receivable most likely be preferable to positive confirmations?

• A) The recipients are likely to sign the confirmations without devoting proper attention to them.
• B) Subsequent cash receipts are unusually difficult to verify.
• C) Analytical procedures indicate that few exceptions are expected.
• D) The combined assessed level of inherent risk and control risk is low.

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Definitions:

Automobile Industry

A sector of the economy that encompasses a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Responsive Supply Chains

Supply chains designed to quickly respond to market changes and customer demands with agility and efficiency.

Information Technology

The employment of computer systems, storage solutions, networking components, and various physical technologies and processes for the creation, processing, storage, protection, and sharing of all types of digital information.

Virtual Logistics

The management of logistic operations, such as transportation, warehousing, and delivery, in a virtual or digital environment.