An Auditor Should Perform Alternative Procedures to Substantiate the Existence

question 26

Multiple Choice

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

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

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another, indicating how much one currency is worth in terms of another.

Japanese Yen

The official currency of Japan, commonly used in international finance transactions.

South African Rand

The currency of South Africa, abbreviated as ZAR, used as medium of exchange in South Africa.

Exchange

An exchange is a marketplace where securities, commodities, derivatives, and other financial instruments are traded between two parties.