To Determine Whether Any Accounts Receivable Are Pledged or Assigned

question 48

Multiple Choice

To determine whether any accounts receivable are pledged or assigned to others,the auditor would most likely perform which of the following procedures?

• A)Examine subsequent collections.
• B)Test a sample of transactions to the general ledger.
• C)Review loan agreements and board of directors' meeting minutes.
• D)Derive an independent estimate of the allowance and compare it to pledged assets.

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Definitions:

Interpersonal Relationships

Connections and interactions between people, which can range from personal and intimate to formal and professional.

Technology-driven Organizations

Companies or institutions that rely heavily on technological advancements and innovations to conduct business and achieve goals.

Manager-Employee Relationships

The dynamic interplay between managers and their employees, influencing workplace morale, productivity, and engagement.

Empower Employees

The practice of giving employees more autonomy, authority, and control over their work to enhance their sense of ownership and motivation.