Beltrand,a PA,is Auditing the Financial Statements of a Small Rural

question 49

Multiple Choice

Beltrand,a PA,is auditing the financial statements of a small rural municipality.The receivable balances represent residents' delinquent property taxes or receivables over the due date.The internal controls at the municipality are weak.To determine the existence of the accounts receivable balances at the balance sheet date,Beltrand would most likely

• A)send positive confirmation requests.
• B)send negative confirmation request.
• C)examine evidence of subsequent cash receipts.
• D)inspect the internal records such as copies of the tax invoices that were mailed to the residents.

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Definitions:

Out-Of-Pocket

Expenses for services not reimbursed by insurance, paid directly by the consumer.

Health Insurance

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including benefits for preventive care and health-related services.

Efficiency Loss

The loss of economic efficiency that occurs when the optimal allocation of resources is not achieved, often due to market failures or externalities.

Health Insurance

An insurance policy that covers or reimburses the policyholder for their medical and surgical costs resulting from sickness or injury.