Auditing

Question 31 (4 points) Listen Fieldwork (Testing) The following information is available regarding testing: In reviewing the accounts receivable aging, the auditors learn that there is a higher number of accounts with balances, there are some very large and very small balances, and many customers' balances consist of multiple invoices. The auditor noticed changes in the aging of receivables and the patterns of purchasing behaviours with some of the major clients. As a result, the auditor vouched additional balances during early December to the invoices and increased the sample size. Required: Comment on the adequacy of the approach taken (4 marks) Paragraph B I U^ EY P