Which of the Following Audit Procedures Would Not Likely Detect

question 74

Multiple Choice

Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?

• A)A review of the minutes of the board of directors' meetings
• B)Discussions with the client
• C)Confirmation of receivables
• D)Examination of correspondence files

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Definitions:

Mutual Fund

An investment company pooling and managing funds of investors.

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.

Hedge Funds

Investment funds that use advanced strategies, including leverage, derivatives, and short selling, aiming for high returns.

Mutual Funds

Investment funds that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.