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

question 86

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.

---

Definitions:

Concession Bargaining

A negotiation process in which the labor union agrees to give up certain benefits or conditions in exchange for something else from the employer.

Pattern Bargaining

A negotiation strategy where a labor union uses the terms of a successfully negotiated contract with one employer as a benchmark for negotiations with other employers.

Hardball Tactics

Aggressive or uncompromising methods used in business, politics, or sports, often to gain an advantage or settle a dispute.

Collective Bargaining

Engaging in talks between company representatives and labor groups to achieve mutual consent on aspects like salaries, working environment, bonuses, and additional features of employee remuneration and privileges.