Which One of the Following Circumstances Would Indicate That Negative

question 61

Multiple Choice

Which one of the following circumstances would indicate that negative confirmations should NOT be used on an engagement?

• A) A significant portion of the total accounts receivable is represented by a small number of accounts with large balances.
• B) The auditor is unaware of disputed or inaccurate accounts.
• C) The internal control over receivables is good.
• D) The recipients are mostly businesses rather than individuals.

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Definitions:

Focus Group

A demographic grouping used in market research that gathers people to discuss their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Sales Tracking

The process of documenting and analyzing sales results to understand trends, forecast future sales, and make informed business decisions.

Promotional Activity

Marketing efforts intended to inform, persuade, or remind consumers about a product or service to increase sales or public awareness.

Marketing Efforts

Activities and strategies employed to promote and sell products or services, including advertising, market research, and content marketing.