The Auditor Would Expect That an Account Receivable from a Customer

question 56

Multiple Choice

The auditor would expect that an account receivable from a customer would be written off by the client when which of the following occurs:

• A) the customer files for bankruptcy.
• B) the account is at least six months old.
• C) a collection agency cannot inspire customer to pay the debt.
• D) the client company concludes that an amount is no longer collectible.

---

Definitions:

Reciprocal Influence

The mutual impact that individuals or groups have on each other within a particular context or relationship.

Fostering Innovation

The process of encouraging and facilitating the generation, development, and implementation of new ideas, products, or methods.

Encouraging Participation

The act of motivating and creating opportunities for individuals or groups to actively engage and contribute to processes, decision-making, or activities.

Coercive Power

The exertion of control over others by enforcing compliance through fear or threat, distinct from other types of influence.