An Auditor Most Likely Would Limit Substantive Tests of Sales

question 3

Multiple Choice

An auditor most likely would limit substantive tests of sales transactions when control risk is assessed as low for the existence or occurrence assertion concerning sales transactions and the auditor has already gathered evidence supporting

• A) Opening and closing inventory balances.
• B) Cash receipts and accounts receivable.
• C) Shipping and receiving activities.
• D) Cutoffs of sales and purchases.

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Definitions:

Hypokinesia

A condition characterized by reduced movement or slowness of movement, often associated with Parkinson's disease.

Disorganized Behavior

Exhibiting actions that are erratic or inappropriate for the situation, often seen in schizophrenia and other psychiatric disorders.

Catatonic Behavior

a type of behavior observed in schizophrenia and some other psychiatric disorders characterized by stupor, rigidity, or unresponsiveness to the environment.

Hallucinations

Perceptions in the absence of external stimuli, such as seeing, hearing, feeling, or smelling things that aren't there, often found in psychiatric conditions or drug use.