1. Which of the following is least likely to be a reasonable explanation for an increase in accounts receivable turnover?

a. early payment incentives for customers

b. tightening of credit policy

c. implementation of more aggressive collection policies

d. allowance of a new grace period for customer payments

2. The auditor sends out positive account receivable confirmations for a client. Assuming a second confirmation is sent out to a major customer wo still fails to respond, the auditor should:

a. Consider the nonresponse as a minor audit finding ans use responding confirmations aa a basis for test controls

b. issue a qualified opinion due to lack of sufficewnt audit evidence

c. send a third confirmation request and if no response perform alternative procedures

d. provide a client copy of the accounts receivable confirmation and request that they obtain the information from the customer