When Scheduling the Audit Work to Be Performed on an Engagement,the

question 40

Multiple Choice

When scheduling the audit work to be performed on an engagement,the auditors should consider confirming accounts receivable balances at an interim date if:

• A)Subsequent collections are to be reviewed.
• B)Internal control over receivables is good.
• C)Negative confirmation requests are to be used.
• D)There is a simultaneous examination of cash and accounts receivable.

---

Definitions:

Value Chain Analysis

A strategic analysis tool used to identify the primary and support activities of a business that create value for the customer, to enhance competitive advantage.

Core Processes

are the essential and fundamental activities carried out by an organization that directly contribute to its main objectives and mission.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.

Customer Satisfaction

The degree to which a product or service meets or exceeds the customer's expectations.