In the Audit of Accounts Receivable,the Positive Form of Confirmation

question 13

Multiple Choice

In the audit of accounts receivable,the positive form of confirmation request is most likely to be used when ________.

• A)recipients are unlikely to respond to negative confirmation requests
• B)the combined assessed level of inherent and control risk relative to accounts receivable is high
• C)a large number of accounts receivable is involved but a relatively small number of errors are expected
• D)the auditor performs a dual-purpose test that assesses control risk and obtains substantive evidence

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Definitions:

Psychological Effects

The mental and emotional impacts or changes that occur in response to an external stimulus.

Attributional Ambiguity

The uncertainty faced by members of stigmatized groups about whether the treatment they receive is due to their personal characteristics or their group membership.

Negative Feelings

Unpleasant or undesirable emotions such as sadness, anger, or fear.

Oppositional Culture

A subculture's rejection of the dominant cultural norms, often seen in the context of social and ethnic groups.