Cooper, CPA Is Auditing the Financial Statements of a Small

question 70

Multiple Choice

Cooper, CPA is auditing the financial statements of a small rural municipality. The receivable balances represent residents' delinquent real estate taxes. Internal control at the municipality is weak. To determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likely

• A) Send positive confirmation requests.
• B) Send negative confirmation requests.
• C) Examine evidence of subsequent cash receipts.
• D) Inspect the internal records, such as copies of the tax invoices that were mailed to the residents.

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Definitions:

Customs

Traditional practices, behaviors, or rituals that are characteristic of a particular community or society.

Beliefs

Beliefs are convictions or acceptances that something exists or is true, especially without proof, and they can guide behavior and thought processes.

Values

Core beliefs or standards that guide and motivate attitudes and actions.

Norms

Established standards of behavior or beliefs that are considered typical or acceptable within a group or society.