The Primary Consideration When Planning Whether to Send Confirmations of Accounts

question 67

Multiple Choice

The primary consideration when planning whether to send confirmations of accounts receivable before the balance sheet date is the:

• A)type of confirmation to be used.
• B)client's internal control over transactions affecting receivables.
• C)availability of staff auditors.
• D)number of customer accounts.

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Definitions:

Lean Processes

Streamlined operations that aim to maximize value to the customer while minimizing waste and inefficiency.

Management By Stress

A management strategy that deliberately imposes stress or high-pressure conditions on employees to increase productivity or efficiency, often at the cost of employee well-being.

Wage Flexibility

The ability of wages to adjust in response to changes in the economy, such as supply and demand for labor.

Incentive Plans

Reward systems designed to motivate employees by tying a portion of their earnings to their performance or achievement of targets.