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In Which of the Following Circumstances Is Substantive Testing of Accounts

Question 856

Multiple Choice

In which of the following circumstances is substantive testing of accounts receivable before the balance sheet date most appropriate?


A) The client has a new sales incentive program in place.
B) Internal controls during the remaining period are effective.
C) There is a high turnover of senior management.
D) It is a first engagement of a new client.

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