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300-740 Practice Questions
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NEW QUESTION: 1
A. Option B
B. Option A
C. Option D
D. Option C
E. Option E
Answer: B,C,E
NEW QUESTION: 2
Drag the appropriate from left to right on description.
Answer:
Explanation:
Explanation
NEW QUESTION: 3
In auditing accounts receivable, the negative form of confirmation request most likely would be used
when:
A. Recipients are likely to return positive confirmation requests without verifying the accuracy of the
information.
B. The total recorded amount of accounts receivable is immaterial to the financial statements taken as a
whole.
C. Response rates in prior years to properly designed positive confirmation requests were inadequate.
D. The combined assessed level of inherent risk and control risk relative to accounts receivable is low.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "D" is correct. Negative confirmations are most likely to be used when the assessed level of audit
risk, including inherent and control risk, is low.
Choice "A" is incorrect. If the total amount of accounts receivable is immaterial, the auditor is not likely to
send any confirmations.
Choice "B" is incorrect. If prior year response rates were low, negative confirmations would not be used
since the auditor would be concerned that the negative confirmations would not receive adequate attention
from the recipients.
Choice "C" is incorrect. An auditor would need to feel comfortable that the confirmations would receive
adequate attention from the recipients before deciding to send negative confirmations.
NEW QUESTION: 4
A. Option B
B. Option A
C. Option C
D. Option D
Answer: C
300-740 FAQ
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300-740 Exam Info
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300-740 Exam Topics
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300-740 Offcial Page
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