If It Is Impracticable to Confirm Accounts Receivable but the Auditor

question 47

Multiple Choice

If it is impracticable to confirm accounts receivable but the auditor obtains sufficient,appropriate evidence to verify the receivable balance by performing alternative procedures,the auditor's opinion should be unqualified.The audit report should ________.

• A)disclose the fact that alternative procedures were used because of a client-imposed scope limitation
• B)disclose in the opinion paragraph that confirmation of accounts receivable was impracticable
• C)not mention the alternative procedures
• D)include an explanatory paragraph that discloses the performance of alternative procedures

Understand the importance of and procedures related to electronic discovery, including the management of electronic evidence.

Learn the significance of the chain of custody and the movement of evidence in legal proceedings.

Understand the fundamental concepts and purposes of pleadings in litigation.

Explain the process of litigation file maintenance throughout the progression of a case.

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Definitions:

Differentiated Marketing

A marketing strategy where a company targets several market segments with distinct products or services tailored to those segments.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the diverse parts of an organization.

Benefits of Scale

Advantages obtained from expanding the size of operations, which often lead to reduced costs per unit.

Undifferentiated Marketing

A marketing strategy that does not segment the market, but rather targets the whole market with one offer or message.