Audit documentation often includes a client prepared aged trial balance of accounts receivable as of the audit balance sheet date. The audit team uses the aging primarily to: Evaluate internal control credit sales Test accuracy of recorded charge sales Estimate credit losses and allowance for doubtful accounts Verify the existence of the recorded receivables.

Audit documentation often includes a client prepared aged trial balance of accounts receivable as of the audit balance sheet date. The audit team uses the aging primarily to: Evaluate internal control credit sales Test accuracy of recorded charge sales Estimate credit losses and allowance for doubtful accounts Verify the existence of the recorded receivables.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 30RQSC

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Question 23

Audit documentation often includes a client prepared aged trial balance of accounts receivable as of the audit balance sheet date. The audit team uses the aging primarily to:

		Evaluate internal control credit sales
		Test accuracy of recorded charge sales
		Estimate credit losses and allowance for doubtful accounts
		Verify the existence of the recorded receivables.

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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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 toa. 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.
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