Hoang Is Engaged in the Audit of a Power Company

question 58

Multiple Choice

Hoang is engaged in the audit of a power company that supplies power to a residential community.All accounts receivable balances are small and the internal control structure is effective.Customers are billed twice monthly.In order to obtain evidence with regards the valuation and allocation assertion of the accounts receivable balances as at balance date, Hoang would most likely:

• A)send positive confirmation requests.
• B)examine evidence of subsequent cash receipts.
• C)use statistical sampling instead of sending confirmation requests.
• D)send negative confirmation requests.

---

Definitions:

Pelvic Girdle

Site of attachment of the lower limb to the trunk; ring of bone formed by the sacrum and the coxal bones.

Appendicular

Pertaining to the limbs or extremities of the body, including the bones of the arms, legs, and the girdles (shoulder and pelvic) that attach them to the axial skeleton.

Intervertebral Disk

A layer of cartilage located between adjacent vertebrae in the spine, serving as a shock absorber and allowing for mobility of the spine.

Thoracic Region

The part of the body located between the neck and the abdomen, encasing the heart and lungs within the rib cage.