An Auditor Should Perform Alternative Procedures to Substantiate the Existence

question 53

Multiple Choice

An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:

• A)no reply to a positive confirmation request is received.
• B)no reply to a negative confirmation request is received.
• C)collectability of the receivables is in doubt.
• D)pledging of the receivables is probable.

---

Definitions:

Cash Collections

Cash Collections refer to the process of receiving payments from customers for goods or services provided, impacting a company's cash flow.

February

The second month of the year in the Gregorian calendar, known for being the shortest month.

Raw Material

The basic material from which a product is made, often processed in manufacturing to create a final product.

Production

The process of creating goods and services.