1. Confirmations are more persuasive than subsequent cash receipts as they help mitigate the risk of ______.

a. Lapping

b. Independence

c. Requirements

d. Electronics

e. Bad bet

2. Confirmation do not necessarily mitigate the risk of _______.

a. Lapping

b. Paper trails

c. Bad debt

d. Negative request

e. Physical inventory

3. Management may have fraudulently overstated revenue by making _______ journal entries.

a. Correcting

b. Inappropriate

c. Adjusting

d. Discounted

e. Excessive

4. Receivables that have been sold should not remain as a(n) __________ on the companys books.

a. Liability

b. Investment

c. Purchase

d. Asset

e. Expense

5. Overstatement may occur when sales for the next period are recorded in the ________ period.

a. Same

b. Last

c. Next

d. Past

e. Current

6. To test Collectability of receivables, auditors may consider credit ratings for debtors of _______ receivables.

a. Immaterial

b. Negative

c. Contra

d. Large

e. Liability

7. Testing the reconciliation for accounts receivable to the general ledger ensures that the software is programmed ________

a.Improperly

Erroneously

Incorrectly

Correctly

Immaterially