The Most Effective Audit Procedure for Determining the Collectability of an Account

question 69

Multiple Choice

The most effective audit procedure for determining the collectability of an account receivable is the

• A) Review of the subsequent cash collections.
• B) Examination of the related sales invoice(s).
• C) Confirmation of the account.
• D) Review of authorization of credit sales to the customer and the previous history of collections.

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Definitions:

Scarce Resource

A limited or insufficient supply of something valuable, necessitating careful management and allocation.

Water Grab

The practice of acquiring water resources in an unethical, illegitimate, or environmentally unsustainable manner.

Ecological Paradigm

An approach focusing on the relationship between living organisms and their environment, often used in discussions about sustainability and environmental concerns.

Human Exceptionalism

Human Exceptionalism is the belief that humans hold a unique position in the universe, distinguished by intellect, technology, or spirits, often used to justify different treatment of humans versus other species.