PA Is Auditing a Client Where the Accounts Receivable Are

question 9

Multiple Choice

PA is auditing a client where the accounts receivable are in worse shape than last year: many accounts are significantly overdue.How would this fact be dealt with in the audit risk model?

• A)increase inherent risk for accounts receivable
• B)decrease inherent risk for accounts receivable
• C)increase control risk for accounts receivable
• D)decrease control risk for accounts receivable

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Definitions:

Retina

A layer of light-sensitive cells at the back of the eye that captures images and sends them to the brain through the optic nerve.

Monocular Cues

Visual signals that require one eye to perceive depth and distance.

Artists

Individuals who create art, which may include paintings, sculptures, performances, and other media, often expressing imaginative or technical skill.

Perceptual Hypotheses

Theories or assumptions that an individual makes about the nature of objects or events based on their perceptual input.