Customers Having Substantial Year-End Past Due Balances Fail to Reply

question 57

Multiple Choice

Customers having substantial year-end past due balances fail to reply after second request confirmation forms have been mailed directly to them. Which of the following is the most appropriate audit procedure?

• A)Examine shipping documents.
• B)Review collections during the year being examined.
• C)Intensify the study of the entity's system of internal control with respect to receivables.
• D)Increase the balance in the allowance for uncollectible accounts.

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Definitions:

Implicit Bias

Unconscious attitudes or stereotypes that affect our understanding, actions, and decisions in an unintentional manner.

Decisions

The process of making choices between alternatives, typically after evaluating information and considering the potential outcomes.

Natural Justice

The principle of fairness in all legal and administrative decisions, ensuring processes are conducted without bias.

Fair Hearing

A judicial or quasi-judicial procedure ensuring an unbiased tribunal, notice, an opportunity to be heard, and the right to present and refute evidence.