The Auditor Has Decided to Audit All Accounts Receivable Amounts

question 36

Multiple Choice

The auditor has decided to audit all accounts receivable amounts that are over 120 days old and over $5000.What type of sample selection method is the auditor using?

• A)haphazard
• B)systematic
• C)directed
• D)block

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Definitions:

Face Value

The nominal value printed on a bond or stock certificate that indicates the amount due at maturity for bonds or the value of a share of a stock.

After-Tax Cost of Debt

The net cost to a company for borrowing funds after factoring in tax deductions on interest expenses.

Coupon Rate

The yearly rate of interest that the issuer of a bond pays to bondholders, typically shown as a percent of the bond's nominal value.

Tax Rate

The part of an individual's or corporation's earnings that is subject to taxation.