Which of the following audit procedures would not likely detect a client's decision to pledge or factor accounts receivable?
A) a review of the minutes of the board of directors' meetings
B) discussions with the client
C) confirmation of receivables
D) examination of correspondence files

Question

Quizplus · Accepted Answer

Confirmation of receivables would only verify the existence and amount of receivables, not whether they have been pledged or factored. The other procedures (reviewing board minutes, discussing with the client, and examining correspondence files) could potentially uncover information about pledging or factoring.

Which of the Following Audit Procedures Would Not Likely Detect