Auditing and Assurance Services, Student Value Edition (16th Edition)
Auditing and Assurance Services, Student Value Edition (16th Edition)
16th Edition
ISBN: 9780134075754
Author: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
Publisher: PEARSON
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Chapter 16, Problem 19.3MCQ

c. After a CPA has determined that accounts receivable have increased as a result of slow collections in a “tight money” environment, the CPA will be likely to

  1. (1) increase the balance in the allowance for bad debt account.
  2. (2) review the going concern ramifications.
  3. (3) review the credit and collection policy.
  4. (4) expand tests of collectibility.
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