Which of the Following Procedures Would an Auditor Most Likely

question 8

Multiple Choice

Which of the following procedures would an auditor most likely perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?

• A) Inspect the shipping records documenting the merchandise sold to the debtors.
• B) Review the cash receipts journal for the month prior to the year-end.
• C) Intensify the study of the internal control structure concerning the revenue cycle.
• D) Increase the assessed level of detection risk for the existence assertion.
• E) Trace the cash disbursements journal for the month prior to the year-end.

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Definitions:

Unionization

The process by which workers join together to form a union in order to collectively bargain with their employer regarding wages, benefits, and working conditions.

Essential Services

Services deemed crucial for public welfare that cannot be interrupted, like healthcare and public transport, often subject to special labor relations rules regarding strikes.

Labor Market

The arena in which workers seek employment and employers seek workers, governed by the forces of supply and demand for labor.

National Labor Federation

An organization or association that represents multiple labor unions at a national level, coordinating actions and policies.