Cooper, CPA Is Auditing the Financial Statements of a Small

question 35

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:

Gulf Coast

Refers to the coastline along the Gulf of Mexico, embraced by states like Florida, Alabama, Mississippi, Louisiana, and Texas, known for its unique cultural heritage and natural beauty.

International Commerce

The exchange of goods, services, and capital across international borders or territories, which is influenced by governmental trade policies, international agreements, and global market dynamics.

Seventeenth Century

The period from 1601 to 1700 in the Gregorian calendar, marked by significant cultural, scientific, and political developments in Europe and elsewhere.

Dutch Reformed Church

A Protestant denomination that originated in the Netherlands during the Reformation and established congregations in North America, especially among Dutch immigrant communities.