Which of the Following Is Not a Primary Objective of the Auditor

question 55

Multiple Choice

Which of the following is not a primary objective of the auditor in undertaking substantive testing of accounts receivable?

• A) Determine the completeness of the recorded receivables.
• B) Establish existence of the receivables.
• C) Determine the adequacy of the internal control.
• D) Determine the approximate amount that can be expected to be received.

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Definitions:

Marginal Physical Product

The additional output produced by using one more unit of a variable input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Additional Revenue

The extra or incremental income received from selling one more unit of a product or service.

Input Hired

Resources or factors of production, such as labor, raw materials, and capital, employed in the creation of goods and services.