An Auditor Should Normally Perform Alternative Procedures to Substantiate the Existence

question 85

Multiple Choice

An auditor should normally perform alternative procedures to substantiate the existence of accounts receivable when:

• A)no reply to a positive confirmation request is received.
• B)no reply to a negative confirmation request is received.
• C)collectability of the receivables is in doubt.
• D)pledging of the receivables is probable.

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Definitions:

Interactionist Theories

Approaches that emphasize how individuals and society interact, shaping personal identity and social structures through this interplay.

Language Development

The process by which children come to understand and communicate language during early childhood.

Functional Fixedness

A bias in cognition that confines a person to employ an object exclusively in its customary use, obstructing the process of generating creative solutions.

Mental Sets

Mental sets refer to the tendency to approach situations in a certain way because that method worked in the past, potentially preventing us from seeing alternative solutions.