The financial records of the Movitz Company show that Mr Dennis owes 4100 on an

The financial records of the movitz company show that

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68. The financial records of the Movitz Company show that Mr. Dennis owes $4,100 on an account receivable. An independent audit is being carried out and the auditors send a positive confirmation to Mr. Jones. What is the most likely reason as to why a positive confirmation rather than a negative confirmation was used here? A. Control risk was particularly low for accounts receivable.B.Inherent risk was particularly high for accounts receivable.C. Mr. Dennis's account was not yet due.D. Mr. Dennis's account was not with a related party.OriginalAACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: HardQuestion also found in Study Guide 69. In the revenue and collection cycle, the order of the activities in the cycle are best illustrated by OriginalAACSB: AnalyticAICPA BB: LegalAICPA FN: ResearchBloom's: KnowledgeDifficulty: Easy 7-59
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Chapter 07 - The Revenue and Collection Cycle 70. Prenumbering invoices, shipping documents, and sales orders is a practice to achieve which of the following assertions? OriginalAACSB: AnalyticAICPA BB: LegalAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: Medium71. An internal control questionnaire for evaluating the occurrence objective of revenues would notinclude which of the following questions? A.Is customer credit approved before orders are shipped?B. Are customers' statements mailed monthly by the accounts receivable department?C. Are direct confirmations of receivables obtained periodically by the internal auditor?D. Are returned goods checked against necessary reports?OriginalAACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: Medium7-60
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Chapter 07 - The Revenue and Collection Cycle 72. The positive form of confirmation is best used when OriginalAACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: Risk AnalysisBloom's: ApplicationDifficulty: Easy
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