Customers Having Substantial Year-End Past Due Balances Fail to Reply

question 57

Multiple Choice

Customers having substantial year-end past due balances fail to reply after second request confirmation forms have been mailed directly to them. Which of the following is the most appropriate audit procedure?

• A)Examine shipping documents.
• B)Review collections during the year being examined.
• C)Intensify the study of the entity's system of internal control with respect to receivables.
• D)Increase the balance in the allowance for uncollectible accounts.

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Definitions:

Minds

The element of a person that enables them to be aware of the world and their experiences, to think, and to feel; the faculty of consciousness and thought.

Body

A term referring to the physical structure of a person or an organism, encompassing all its biological systems and parts.

Hemisphere

one half of the spherical brain, either the right or left, each responsible for different functions and cognitive processes.

Muscles

Tissues in the body capable of contraction, making movement possible, and playing a key role in maintaining posture and circulating blood.