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:

Private Information

Data or knowledge that is not publicly available and is often confidential or proprietary in nature.

Landscaping

The process of modifying the visible features of an area of land, including living elements, such as flora and fauna; and abstract elements like weather conditions.

Social Capital Dimension

Refers to the value found in relationships and networks that individuals or organizations possess which can be leveraged for financial, personal, or social gains.

Attitude

A settled way of thinking or feeling about something, typically reflected in a person's behavior.