When Should Auditors Not Perform Alternative Procedures in Testing the Accounts

question 118

Multiple Choice

When should auditors not perform alternative procedures in testing the accounts receivable balance?

• A) when customers do not return positive confirmation requests
• B) when customers do not return negative confirmation requests
• C) when confirmations are deemed to be ineffective as an audit procedure
• D) when confirmations are too costly to use

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Definitions:

Opportunity Recognition

The ability to identify and evaluate potential business or investment opportunities within the environment.

Economic Value

The worth of a good or service determined by the market forces of supply and demand.

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A collaborative idea generation process where members of a group freely share and develop creative solutions or thoughts.