When Accounts Receivable Are Confirmed at an Interim Date, Auditors

question 75

Multiple Choice

When accounts receivable are confirmed at an interim date, auditors need not be concerned with:

• A)obtaining a summary of receivables transactions from the interim date to the year-end date.
• B)obtaining a year-end trial balance of receivables, comparing it to the interim trial balance, and obtaining evidence and explanations for large variations.
• C)sending negative confirmations to all the customers as of the year-end date.
• D)considering the necessity for some additional confirmations as of the balance sheet date if balances have increased materially.

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Definitions:

Equilibration

A concept in developmental psychology referring to how children progress through different stages of cognitive development by balancing assimilation and accommodation.

Assimilation

In psychology, a cognitive process where new information is interpreted and integrated into existing schemas or knowledge structures.

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Social Cognitive Theory

A theory in psychology that emphasizes observational learning, imitation, and modeling in understanding behavior.