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NEW QUESTION: 1
When an auditor does not receive replies to positive requests for year-end accounts receivable
confirmations, the auditor most likely would:
A. Increase the assessed level of inherent risk for the revenue cycle.
B. Ask the client to contact the customers to request that the confirmations be returned.
C. Inspect the allowance account to verify whether the accounts were subsequently written off.
D. Increase the assessed level of detection risk for the valuation and completeness assertions.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. When using positive confirmation requests, the auditor should generally follow up
with a second and sometimes third request to those parties from whom replies have not been received. In
addition, asking the client to contact its customers may encourage further responses.
Choice "A" is incorrect. Confirmations are designed to provide evidence of existence, so nonresponses
would require alternative procedures focused on existence as well. Verification that the account was
subsequently written off tests the valuation assertion, but does not provide evidence of existence.
Choice "B" is incorrect. The auditor sets detection risk based on the assessed levels of inherent risk and
control risk, and would only increase the acceptable level of detection risk in response to a decrease in
inherent or control risk. Failure to receive confirmations would not cause the auditor to make such a
change.
Choice "D" is incorrect. Inherent risk assessments would not be affected by confirmation response rates,
which are not subject to client control.

NEW QUESTION: 2


Shape: constructor Square: foo Shape: foo


A. Option D
B. Option C
C. Option B
D. Option A
E. Option E
Answer: A

NEW QUESTION: 3
An Ethernet bridge is configured such that all interfaces are in a single broadcast domain
By default.
Which two tasks does the bridge perform in response to receiving a multicast frame?
(Choose two)
A. It floods the frame out of particular interfaces based on its multicast MAC table
B. It floods the frame out of all interfaces except the one on which it was received
C. It drops the frame
D. It learns the source MAC address
Answer: B,D