An Attitude That Includes a Questioning Mind and a Critical

question 320

Multiple Choice

An attitude that includes a questioning mind and a critical assessment of audit evidence is called:

• A) Operational skepticism
• B) Audit skepticism
• C) Professional skepticism
• D) None of the above

---

Definitions:

Net Sales

The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects its receivables or the speed of debt collection from customers.

Average Account Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit.

Allowance Method

An accounting technique that estimates uncollectible accounts receivable as an expense, reducing the accounts receivable balance.