The following audit procedures are consistent with gathering evidence about the valuation assertion of a client’s accounts receivable balance, except: * Inquiry with the management with regard the client policy of providing allowance for doubtful accounts. Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance. Recomputation of the client’s aging schedule and the required allowance for doubtful accounts. Testing the reasonableness of the client’s estimation policy in determining the portion of the receivables that are doubtful of collection. None of the above.
The following audit procedures are consistent with gathering evidence about the valuation assertion of a client’s accounts receivable balance, except: * Inquiry with the management with regard the client policy of providing allowance for doubtful accounts. Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance. Recomputation of the client’s aging schedule and the required allowance for doubtful accounts. Testing the reasonableness of the client’s estimation policy in determining the portion of the receivables that are doubtful of collection. None of the above.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 20MCQ
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Question
The following audit procedures are consistent with gathering evidence about the valuation assertion of a client’s accounts receivable balance, except: *
Inquiry with the management with regard the client policy of providing allowance for doubtful accounts.
Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance.
Recomputation of the client’s aging schedule and the required allowance for doubtful accounts.
Testing the reasonableness of the client’s estimation policy in determining the portion of the receivables that are doubtful of collection.
None of the above.
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