The Auditors Obtain Audit Evidence for Accounts Receivable by Using

question 12

Multiple Choice

The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests.Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?

• A)A substantial number of accounts are in disputes.
• B)The combination of inherent risk and control risk is high.
• C)A low exception rate is expected.
• D)The auditors believe that recipients of the requests are unlikely to give them consideration.

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Definitions:

Therapeutic Factors

Therapeutic factors are elements within therapy that contribute to the healing process, such as empathy, understanding, and support from the therapist, as well as group cohesion in group therapy.

Perceptions

The process of organizing and interpreting sensory information to form an understanding of the environment or a situation.

Casualties

Individuals who are injured, killed, or otherwise incapacitated as a result of accidents, violence, or disasters.

Intimacy

A close, familiar, and affectionate personal relationship that involves emotional, physical, or intellectual connection.