In the Audit of the Revenue of Hiram Manufacturing Company,the

question 44

Multiple Choice

In the audit of the revenue of Hiram Manufacturing Company,the auditors obtain a number of shipping documents shortly before year-end and immediately following the year under audit.The auditors compare the documents to the sales journal in order to test which of the following assertions?

• A)Existence of sales.
• B)Presentation and disclosure of receivables.
• C)Cutoff of sales transactions.
• D)Completeness of receivables.

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Definitions:

Ambiguous Stimulus

Any object, event, or situation that lacks clear interpretation or meaning and can be perceived in multiple ways.

Projective Test

A type of psychological test designed to let a person respond to ambiguous stimuli, potentially revealing hidden emotions and internal conflicts.

MMPI

The Minnesota Multiphasic Personality Inventory, a test used in mental health to assess and diagnose mental disorders.

Psychologist

A professional specialized in the study of the mind and behavior, who conducts research and provides assessments, diagnosis, and treatment for mental disorders.