The Following Audit Procedure Tests Primarily Which Balance-Related Audit Objective

question 57

Multiple Choice

The following audit procedure tests primarily which balance-related audit objective for accounts receivable: inquire of management whether there are any related-party loans.

• A) existence
• B) completeness
• C) classification
• D) all of the above.

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Definitions:

Superordinate Goals

Shared goals that override differences among people and require their cooperation to achieve.

Competing Objectives

Instances where objectives or goals of individuals, teams, or departments within an organization clash or oppose each other.

Unethical Negotiating Behaviour

Practices in negotiation that are dishonest, unfair, or violate moral principles.

Long-Run Losses

Financial deficits that a business incurs over an extended period, often leading to strategic reassessment or restructuring.