Question: Explain why the allowance for doubtful accounts is a high risk audit area. Why do we use the allowance for doubtful accounts? Who is responsible

Explain

why the allowance for doubtful accounts is a "high risk" audit area.

Why do we use the allowance for doubtful accounts?

Who is responsible for establishing an adequate reserve?

What is the auditor's role?

How would the auditor audit this account?

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