Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?
A)A review of the minutes of the board of directors' meetings
B)Discussions with the client
C)Confirmation of receivables
D)Examination of correspondence files

Question

Quizplus · Accepted Answer

Confirmation of receivables would not likely detect a client's decision to pledge or factor accounts receivable as both these transactions would typically result in the accounts being removed from the client's control and therefore, would not be included in the confirmation process. A review of the minutes of the board of directors' meetings, discussions with the client, and examination of correspondence files may provide information on any such transactions.

Which of the Following Audit Procedures Would Not Likely Detect