The auditor has conducted tests of controls of the write-off of accounts receivable and found two exceptions.These exceptions are
A)an indication of the likelihood of errors or fraud and other irregularities.
B)confirmation that controls are not functioning as designed throughout the year.
C)information about the quantity of the dollar error in accounts receivable.
D)indications that employee training is required in the accounting area.

Question

Quizplus · Accepted Answer

The exceptions found in the tests of controls indicate a higher likelihood of errors or fraud and other irregularities occurring in the write-off of accounts receivable. This requires further investigation and potentially additional audit procedures to assess the extent and potential impact of these exceptions on the financial statements.

The Auditor Has Conducted Tests of Controls of the Write-Off