An Auditor Should Perform Alternative Procedures to Substantiate the Existence

question 27

Multiple Choice

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

• A)No reply to a positive confirmation request is received.
• B)No reply to a negative confirmation request is received.
• C)Collectibility of the receivables is in doubt.
• D)Pledging of the receivables is probable.

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Definitions:

Poisson Distribution

A probability distribution that measures the probability of a given number of events happening in a fixed interval of time or space.

Probability Distribution

A function in mathematics that calculates the probability of each possible result of an experiment.

Soccer Team

A group of players forming one side in a competitive game of soccer.