Once an Auditor Has Determined That Accounts Receivable at Year-End

question 13

Multiple Choice

Once an auditor has determined that accounts receivable at year-end have increased due to slow collections in a 'tight money' environment, the auditor would be likely to:

• A)review the going concern ramifications.
• B)increase the balance in the allowance for bad debts account.
• C)expand tests for the valuation and allocation assertion.
• D)expand tests for the existence assertion.

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Definitions:

Functional Subcultures

Groups within an organization that share specific values, norms, and behaviors related to their particular roles or functions.

Salaried Professionals

Individuals employed in a professional capacity on a salary basis, often not eligible for overtime and in positions requiring specialized knowledge or qualifications.

Multicultural Organizations

Organizations that recognize, celebrate, and integrate diversity from various cultures in their policies, practices, and workplace dynamics.

Pluralism

The coexistence of multiple groups or cultures within a society, recognizing and valuing diversity.