In Connection with the Examination of Financial Statements by an Independent

question 91

Multiple Choice

In connection with the examination of financial statements by an independent auditor,the client suggests that members of the internal audit staff be utilized to minimize audit costs.Which of the following tasks could most appropriately be delegated to the internal audit staff?

• A) Selection of accounts receivable for confirmation, based upon the internal auditor's judgment as to how many accounts and which accounts will provide sufficient coverage.
• B) Preparation of schedules for negative accounts receivable responses.
• C) Evaluation of the internal control for accounts receivable and sales.
• D) Determination of the adequacy of the allowance for doubtful accounts.

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Definitions:

Crepitus

A crackling or grating sound or sensation produced by friction between bone and cartilage or the fractured parts of a bone.

Decreased Breath Sounds

A condition where the intensity of breathing sounds is less than expected upon auscultation, often indicative of respiratory issues.

Whispered Pectoriloquy

A test in which whispered phrases are more clearly and distinctly heard through the chest wall with a stethoscope, indicative of lung consolidation.

Adventitious Sounds

Unusual sounds heard during respiration, such as crackles, wheezes, or stridor, which are indicative of respiratory conditions.