Which of the Following Procedures Is an Auditor Most Likely

question 6

Multiple Choice

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

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

---

Definitions:

Effective Problem Solving

The capacity to successfully resolve difficulties or issues through logical and creative approaches.

Diagnostic Reasoning

The process by which healthcare professionals determine the cause of a patient's symptoms and signs.

Scientific Method

A systematic approach to research where the problem is identified, relevant data is gathered, a hypothesis is formulated, and the hypothesis is empirically tested.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, especially important in problem-solving and decision-making processes.