When an Auditor Tests to Determine If All Existing Accounts

question 24

Multiple Choice

When an auditor tests to determine if all existing accounts receivable are included in the aged trial balance,

• A) they cannot rely on the self-balancing nature of the accounts receivable master file.
• B) if all sales to a customer are omitted from the sales journal, it is easy to uncover the understatement of accounts receivable by tests of details of balances.
• C) auditors rarely send accounts receivable confirmations to customers with zero balances.
• D) unrecorded sales to a new customer are easy to identify for confirmation because that customer is included in the accounts receivable master file.

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Definitions:

Situational Attributions

The process of assigning the cause of behavior to some situation or event outside a person's control rather than to some internal characteristic.

Social Influence

The effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behavior.

Scots-Irish Herders

Descendants of Scottish and Irish immigrants in the United States, particularly those who engaged in herding and pastoral activities.

Emotional Labour

The effort to control feelings and outward emotional displays to adhere to a job's emotional expectations.