For Which of the Following Accounts Is It Most Likely

question 46

Multiple Choice

For which of the following accounts is it most likely that most of the audit work can be performed in advance of the balance sheet date?

• A)Accounts receivable.
• B)Cash.
• C)Current marketable securities.
• D)Property,plant,and equipment.

---

Definitions:

High Risk

Situations or investments that carry a significant possibility of loss or failure.

Low Risk

Pertaining to situations or investments that have a minimal likelihood of loss or failure.

Insurance Market

The marketplace where individuals or entities can purchase insurance products to transfer risk from themselves to an insurance provider.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, leading to an imbalance that can result in market inefficiency or failure.