An Auditor Most Likely Would Limit Substantive Tests of Sales

question 1

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 assertions 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:

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Power Distance

A cultural dimension that expresses the degree to which less powerful members of a society accept and expect that power is distributed unequally.

Hofstede's Dimensions

A framework for understanding cultural differences along six dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term orientation vs. short-term normative orientation, and indulgence vs. restraint.

Mercenary Culture

An organizational culture characterized by a focus on results and efficiency, often at the expense of employee loyalty and long-term commitment.