1. Jovi, an experienced auditor at the firm Dash, used audit data analytics (ADA) to assist in assessing the risk of material misstatement for their client, Willis Engineering's, accounts receivable. Willis Engineering grants its customers credit terms of net 45 days. Accordingly, Dash expects Willis Engineering's average collection period to be between 40 and 50 days. During Jovi's analysis, it was noted that Willis Engineering's average collection period is closer to 60 days, with approximately 15% of Willis Engineering's customers taking on average more than 75 days. When discussing these results with the controller, the cause is undetermined. How should Jovi react to this information?

		Jovi should note results as a notable item. As a result of this notable item, Dash should consider whether a qualified audit report should be issued, noting this exception for accounts receivable.
		Jovi should note results as a notable item. Dash will need to consider their assessment of the risk of material misstatement for the valuation of accounts receivable. Accordingly, Dash may need to update the audit plan to increase testing pertaining to this item.
		Jovi should note results as a notable item. Dash should communicate these results with the company's management and the audit committee. Further, as these results fall outside of the expected range, Jovi will no longer need to test controls related to accounts receivable as this discrepancy has been noted as an exception. All other parts of the audit remain unchanged.
		None of these answer choices are correct.