For Which of the Following Accounts Receivable Customer Populations Would

question 44

Multiple Choice

For which of the following accounts receivable customer populations would the use of negative confirmations be most appropriate?

• A)A retail truck and trailer sales company with high inherent risk and moderate control risk over the revenue cycle.
• B)A utility company with control risk over the revenue cycle assessed high.
• C)A mortgage banking company with control risk over the purchasing cycle assessed low.
• D)A cable company with control risk over the revenue cycle assessed low

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Definitions:

Privacy Rights

The rights of individuals to control or limit access to their personal information and to maintain confidentiality in personal matters.

Electronic Search

The use of electronic means to locate information or data, often through the internet or on digital devices.

Corporation

A legal entity that is separate and distinct from its owners and has rights, privileges, and liabilities independent of those of its shareholders.

Electronic Surveillance

The monitoring of behavior, activities, or information for the purpose of gathering evidence or intelligence, using electronic devices.