How might the auditor determine whether a client has limited rights to accounts receivable?

Question

Quizplus · Accepted Answer

The auditor can review the loan agreements, credit agreements, and other relevant documents to determine whether the client has limited rights to accounts receivable. These documents may contain restrictions on the client's ability to pledge or assign accounts receivable as security for loans or other obligations. By reviewing these documents, the auditor can determine whether the client has limited rights to accounts receivable.

How Might the Auditor Determine Whether a Client Has Limited