Lewis Corporation Has a Few Large Accounts Receivable That Total

question 20

Multiple Choice

Lewis Corporation has a few large accounts receivable that total one million dollars, whereas Clark Corporation has many small accounts receivable that total one million dollars. Misstatement in any one account is more significant for Lewis corporation because of the concept of

• A) materiality.
• B) audit risk.
• C) reasonable assurance.
• D) comparative analysis.

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