question 40A client has a separate sales group for its largest preferred customers, a select group of customers who normally make purchases in excess of $250,000 and often have balances of over $1,000,000. Whcih of the following audit procedures would the auditor most likely perform? Prepare a schedule of purchases and payments for these customers. Send out negative confirmations on a large sample of these customers. Inquire of the sales manager regarding accounts receivable items. Send out positive confirmations on a large sample of these customers.

Audit procedures are actions taken by auditors to obtain all relevant information about the quality…

Answered: A client has a separate sales group for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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question 40

A client has a separate sales group for its largest preferred customers, a select group of customers who normally make purchases in excess of $250,000 and often have balances of over $1,000,000. Whcih of the following audit procedures would the auditor most likely perform?

		Prepare a schedule of purchases and payments for these customers.
		Send out negative confirmations on a large sample of these customers.
		Inquire of the sales manager regarding accounts receivable items.
		Send out positive confirmations on a large sample of these customers.

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