If the Auditor Decides Not to Confirm Accounts Receivable That

question 48

Multiple Choice

If the auditor decides not to confirm accounts receivable that are material, the auditor should

• A) always use alternative procedures to audit the accounts receivable.
• B) include copies of customer statements in the audit files.
• C) document the reasons for such a decision in the audit files.
• D) include copies of customer sales invoices in the audit files.

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Definitions:

Degrees Of Freedom

The number of values in the final calculation of a statistic that are free to vary.

T-table

A table used in statistics to determine critical values for the t-distribution, useful for hypothesis testing or setting confidence intervals.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or a system without violating any constraint.

F Table

A chart used in statistics that provides critical values for the F-distribution, helpful in analyzing variances by comparing the ratio of two sets of data.