Which of the Following Audit Procedures Would Not Likely Detect

question 105

Multiple Choice

Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?

• A) a review of the minutes of the board of directors' meetings
• B) discussions with the client
• C) confirmation of receivables
• D) examination of correspondence files

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Definitions:

Cash Receipts

The total amount of cash collected by a business from all sources during a given period.

Bank Deposits

Funds that individuals or entities place into a banking institution's account for safekeeping, which can include savings, checking, and time deposits.

Cash Account

An account that records all transactions involving cash inflows and outflows for a company.

Collections

The process of pursuing payments of debts owed by individuals or businesses, typically regarding accounts receivable.