Before Applying Principal Substantive Tests to an Entity's Accounts Receivable

Multiple Choice

Before applying principal substantive tests to an entity's accounts receivable at an interim date, an auditor should:

A) Consider the likelihood of assessing the risk of incorrect rejection too low.
B) Project sampling risk at the maximum for tests covering the remaining period.
C) Ascertain that accounts receivable are immaterial to the financial statements.
D) Assess the difficulty in controlling the incremental audit risk.