An auditor is performing a test of controls of accounts receivable. During the risk assessment, an auditor uses analytics to identify 20 customers with past due accounts receivable. These customers make up a small percentage of the overall customer base. The auditor is moving on to perform substantive procedures

Which action should be taken next by the auditor?

Implement a new collection policy for the client in the following fiscal year

Require the client to write off identified past due accounts

Test internal controls over existence of accounts receivable

Include the identified past due accounts in the confirmation process

Answer rating: 100% (QA)

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