When the Client Has a Large Number of Relatively Small

question 75

True/False

When the client has a large number of relatively small accounts receivable and the assessed level of control risk for receivables and related revenue transactions is high,the auditor is more likely to use negative confirmations.

---

Definitions:

Third-Party Payments

Transactions in which the person making a payment is not directly receiving the good or service, often seen in healthcare and insurance.

Healthcare Prices

The cost associated with medical services and products, which can vary widely depending on a variety of factors.

Economize

The act of using resources efficiently, especially to reduce costs.

Payroll Tax

A tax imposed on employers or employees, and is usually calculated as a percentage of the salaries that employers pay their staff.