To Determine If the Client Has Rights to the Accounts

question 120

True/False

To determine if the client has rights to the accounts receivable on the trial balance, the auditor should inquire of management if any receivables are pledged or factored.

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Definitions:

Management Process

The systematic approach involving planning, organizing, leading, and controlling to achieve organizational goals efficiently.

Organizational Objectives

Specific targets that an organization aims to achieve, which guide its operations and strategic planning.

Design-Production Cycle

The interconnected stages involved in developing a product, from initial design through to final production and delivery to customers.

Inspect-It-In Approach

A traditional quality control approach where products are inspected after completion to ensure they meet the required standards, often considered less effective than preventive measures.