What Evidence Is Utilized by the Auditor for Analytical Purposes

question 40

Multiple Choice

What evidence is utilized by the auditor for analytical purposes in substantiating the completeness of the allowance for bad debt estimate?

• A)Accounts receivable aging schedule.
• B)Copies of checks received from customers.
• C)Confirmations returned without exception.
• D)Stock prices of customer companies.

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Definitions:

Babinski Sign

A reflex action of the toes, where they fan out when the sole of the foot is stimulated, indicating possible neurological damage.

Cerebral Cortex

The outer layer of the cerebrum, involved in various high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.

Oriented

The state of being aware of one's own personal identity, place, time, and situation as a measure of cognitive function.

Cerebellum

A part of the brain located at the back of the skull, vital for coordinating movement and balance.