In the Sales and Collection Cycle,the Results of the Tests

question 26

Multiple Choice

In the sales and collection cycle,the results of the tests of controls determine

• A)the extent to which planned detection risk is satisfied for each accounts receivable objective.
• B)whether assessed control risk for sales and cash receipts needs to be revised.
• C)if tests of details of balances need to be performed.
• D)whether positive or negative confirmations should be used for this engagement.

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Definitions:

Denial and Repression

Defense mechanisms in psychology wherein denial involves refusing to acknowledge reality, while repression involves unconsciously blocking unpleasant thoughts and feelings.

Projection and Denial

Defense mechanisms; projection involves attributing one's own unacceptable thoughts or feelings to others, while denial involves refusing to acknowledge reality or facts.

Projection and Rationalization

Projection and rationalization are defense mechanisms; projection involves attributing one's own unacceptable thoughts or feelings to others, while rationalization involves justifying behaviors or feelings with seemingly logical reasons to avoid the true explanation.

Rationalization

A coping technique that involves providing logical or rational justifications for questionable behaviors or emotions to sidestep their real causes.