Smith Is Engaged in the Audit of a Cable TV

question 61

Multiple Choice

Smith is engaged in the audit of a cable TV firm that services a rural community. All receivable balances are small, customers are billed monthly, and internal control is effective. To determine the existence of the accounts receivable balances at the balance sheet date, Smith would most likely:

• A)send positive confirmation requests.
• B)send negative confirmation requests.
• C)examine evidence of subsequent cash receipts instead of sending confirmation requests.
• D)use statistical sampling instead of sending confirmation requests.

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Definitions:

Functional Area Managers

Individuals responsible for managing specific business departments like finance, marketing, or human resources, ensuring their area of expertise aligns with the overall business strategy.

Managerial Aspect

Refers to the viewpoints, activities, or considerations necessary for the effective management and leadership within an organization.

IT Architecture

The structured framework used to conceptualize digital operations strategies, information processing, and technological resources of an organization.

Applications Software

Computer software designed to help users perform specific tasks or activities beyond the basic operation of the computer itself.