What Evidence Is Utilized by the Auditor for Analytical Purposes

question 94

Multiple Choice

What evidence is utilized by the auditor for analytical purposes in substantiating 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:

Tendon Tension

The force exerted by a tendon when it is stretched or pulled, contributing to the movement of bones and muscles.

Cutaneous Pressure

The sensation of mechanical force or pressure against the skin, sensed by mechanoreceptors within the skin's layers.

Pacinian Corpuscles

Specialized nerve endings in the skin and viscera that detect pressure and vibration, contributing to the sense of touch.

Temperature

A measure of the average kinetic energy of the particles in a sample of matter, expressed in units of degrees on specific scales such as Celsius or Fahrenheit.