In Auditing Accounts Receivable, the Negative Form of Confirmation Request

question 64

Multiple Choice

In auditing accounts receivable, the negative form of confirmation request most likely would be used when

• A) Recipients are likely to return positive confirmation requests without verifying the accuracy of the information.
• B) The combined assessed level of inherent and control risk relative to accounts receivable is low.
• C) A small number of accounts receivable are involved but a relatively large number of errors are expected.
• D) The auditor performs a dual purpose test that assesses control risk and obtains substantive evidence.

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Definitions:

Calcium Blood Levels

The concentration of calcium in the bloodstream, important for various physiological processes including bone formation, muscle function, and nerve transmission.

Parathyroid Hormone

A hormone produced by the parathyroid glands that regulates calcium levels in the blood and bone metabolism.

Anabolic Steroids

Synthetic substances similar to the male sex hormone testosterone, used to increase muscle mass and strength.

HDL Concentration

The amount of high-density lipoprotein, often referred to as "good" cholesterol, present in the bloodstream.