The audit working papers often include an auditee-prepared aged trial balance of accounts receivable as of the

Question:

The audit working papers often include an auditee-prepared aged trial balance of accounts receivable as of the balance sheet date. The aging is best used by the auditor for which of the following?

a. Evaluating internal control over credit sales.

b. Testing the accuracy of recorded charge sales.

c. Estimating credit losses.

d. Verifying the existence of the recorded receivables.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

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