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:

Terminally Ill

A condition in which a patient is suffering from a disease or condition that is expected to lead to death within a short period of time.

Therapeutic

Pertaining to the healing of disease, often used to describe treatments that are intended to relieve or heal disorders.

Acquired Immunodeficiency Syndrome (AIDS)

A chronic, potentially life-threatening condition caused by the human immunodeficiency virus (HIV) damaging the immune system.

No Visitors

A rule or condition where individuals are not allowed to receive guests or visitors.