An Auditor Most Likely Would Limit Substantive Tests of Sales

question 6

Multiple Choice

An auditor most likely would limit substantive tests of sales transactions when control risk is assessed as low for the existence or occurrence assertions concerning sales transactions and the auditor has already gathered evidence supporting

• A) Opening and closing inventory balances.
• B) Cash receipts and accounts receivable.
• C) Shipping and receiving activities.
• D) Cutoffs of sales and purchases.

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Definitions:

Electrodes

Conductive materials that are used to make electrical contact with a nonmetallic part of a circuit, such as the human body.

Brain-Wave Recording

The process of measuring and recording the electrical activity of the brain, typically using electroencephalography (EEG).

Electroencephalogram

A medical test that measures electrical activity in the brain using small, flat metal discs called electrodes attached to the scalp.

Electrical Energy

The form of energy resulting from the movement of charged particles, such as electrons, through a conductor.