Audit documentation often includes a client- prepared, aged trial balance of accounts receivable as of the balance

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Audit documentation often includes a client- prepared, aged trial balance of accounts receivable as of the balance sheet date. The audit team uses this aging primarily to
a. Evaluate internal control over credit sales.
b. Test the accuracy of recorded charge sales.
c. Estimate credit losses.
d. Verify 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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Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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