Calculating the Turnover of Receivables Is Often Used in Testing

question 96

Multiple Choice

Calculating the turnover of receivables is often used in testing the sales cycle by auditors when performing which of the following?

• A)Trend analysis.
• B)Ratio analysis.
• C)Reasonableness testing.
• D)Nonstatistical sampling.

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Definitions:

Behavioral Theories

Refer to a range of theories in psychology that emphasize the importance of observable behaviors and the ways in which they are learned.

Anal-retentive Trait

A personality characteristic associated with those who are excessively orderly, neat, rigid, and controlling, stemming from Freudian psychoanalytic theory regarding psychosexual development stages.

Perfectionism

A characteristic of an individual marked by the pursuit of perfection and the establishment of extremely high standards for performance.

Gullibility

A tendency to be easily persuaded or convinced to believe something, often without critical analysis or sufficient evidence.