An assistant auditor was instructed to “test the aging of accounts receivable as shown on the trial balance prepared by the client.” In making this test, the assistant traced all past-due accounts shown on the trial balance to the ledger cards in the accounts receivable subsidiary ledger and computed the aging of these accounts. The assistant found no discrepancies and reported to the senior auditor that the aging work performed by the client was satisfactory.
Comment on the logic and adequacy of this test of the aging of accounts receivable.

  • CreatedOctober 27, 2014
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