Cooper, CPA Is Auditing the Financial Statements of a Small

question 35

Multiple Choice

Cooper, CPA is auditing the financial statements of a small rural municipality. The receivable balances represent residents' delinquent real estate taxes. Internal control at the municipality is weak. To determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likely:

• A)send positive confirmation requests.
• B)send negative confirmation requests.
• C)examine evidence of subsequent cash receipts.
• D)inspect the internal records, such as copies of the tax invoices that were mailed to the residents.

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Definitions:

Mimbres Culture

A Native American culture centered in what is now the southwestern United States, known for its black-on-white pottery with intricate geometric designs.

Black-on-white Painted Bowls

Types of ceramic bowls characterized by their decorative style, which includes black designs painted on a white background, common in Ancestral Puebloan pottery.

Southwestern New Mexico

A region in the southwestern part of the state of New Mexico, characterized by its beautiful desert landscapes and rich cultural history.

Real GDP

The calculation of a nation's total economic output accounting for price level changes over time, to represent the real value of all produced goods and services using stable prices.