Calculating the Turnover of Receivables Is Often Used in Testing

question 102

Multiple Choice

Calculating the turnover of receivables is often used in testing the sales cycle by auditors when performing

• A)trend analysis.
• B)ratio analysis.
• C)reasonableness testing.
• D)non-statistical sampling.

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Definitions:

Temporal

Relating to time or the sequential order in which events occur.

Casual

An informal, relaxed approach or style, often applied to dress codes, conversation, or workplace environment.

Intuitive Judgments

Decision making that is based on instinctive feelings rather than conscious reasoning or detailed analysis.

Devil's Advocate

An individual who puts forward a controversial view with the aim of sparking discussion or assessing the robustness of counterarguments.