In the sales and collection cycle,the results of the tests of controls determine
A)the extent to which planned detection risk is satisfied for each accounts receivable objective.
B)whether assessed control risk for sales and cash receipts needs to be revised.
C)if tests of details of balances need to be performed.
D)whether positive or negative confirmations should be used for this engagement.

Question

Quizplus · Accepted Answer

The results of tests of controls in the sales and collection cycle help auditors decide if the initially assessed control risk levels for sales and cash receipts are accurate or need adjustment based on the effectiveness of the entity's controls as observed during testing.

In the Sales and Collection Cycle,the Results of the Tests