When Control Risk for the Existence Assertion Is Assessed at a High

question 29

Multiple Choice

When control risk for the existence assertion is assessed at a high level,which of the following is a likely effect with respect to the auditors' confirmation of receivables?

• A)The account balances as of year-end will generally be confirmed.
• B)The auditors will in general use blank rather than positive confirmation requests.
• C)The auditors will be required to confirm accounts as of an interim date (during the year under audit)and as of year-end.
• D)Confirmation will not in general be used as the auditor will rely primarily upon support such as vendors' invoices,purchase orders and receiving reports.

---

Definitions:

Sociological Definition

A sociological definition involves understanding terms, concepts, and phenomena from the perspective of their impact on and relation to society, emphasizing their social contexts and functions.

Profession

A disciplined group of individuals who adhere to ethical standards and possess specialized knowledge and skills in a significant field of human endeavor.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.

Emergency Room

A specialized department in a hospital that provides immediate treatment for acute illnesses and injuries.