According to Auditing Standards,accounts Receivable Confirmations Are Required to Be

question 103

Multiple Choice

According to auditing standards,accounts receivable confirmations are required to be used in which of the following situations?

• A)On every audit engagement.
• B)If the client agrees in writing to the procedure.
• C)If the accounts receivable balance is material.
• D)If environmental risk is low.

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Definitions:

Corporate Takeover

The acquisition of one company by another, accomplished through various means such as purchasing a majority share of the target company's stock.

Equity Ownership

The possession of shares in a company, which represent a claim on the company's assets and earnings.

Poison Pill

A defensive strategy employed by a company's management to prevent or deter hostile takeovers by making the company less attractive to the potential acquirer.

Flip-over Provision

A defensive strategy in a company's charter to deter hostile takeovers, allowing shareholders to buy shares at a discount if a single buyer acquires a significant portion of the company.