MC #37 Which of the following audit procedures would give the most assurance concerning the rights and obligations assertion for accounts receivable? Trace amounts in the accounts receivable subsidiary ledger to details on shipping documents. Assess the allowance for uncollectible accounts for reasonableness. Inquire about any accounts receivable factoring arrangements Compare the accounts receivable turnover ratio to other companies in the industry MC #39 Which of the following statements is FALSE? Confirmations could be used to test either the existence or the completeness assertion. Analytical procedures can be used to examine the reasonableness of accounts payable and accrued expenses. Transactions in Purchasing usually begin with the receipt of an invoice from a vendor. Accounts payable confirmations are used less frequently by auditors than accounts receivable confirmations. MC #41 Which of the following circumstances would require the auditor to modify both the Opinion paragraph and the Basis for Opinion paragraph in the auditors' report on the company's financial statements? The auditor's opinion is based in part on the report of another auditor. The financial statements are not comparable to those of the prior period. There is a going-concern issue. There is a material misstatement in the current year's financial statements