In auditing the client’s receivables, the auditor decided to select entries in the sales journal and trace them back to the sales invoice, delivery receipt and the sales order. This procedure is consistent in corroborating which of the following assertions? * A. Presentation B. Completeness C. Rights D. Existence E. None of the above
Choose the one correct answer
1. In auditing the client’s receivables, the auditor decided to select entries in the sales journal and trace them back to the sales invoice, delivery receipt and the sales order. This procedure is consistent in corroborating which of the following assertions? *
A. Presentation
B. Completeness
C. Rights
D. Existence
E. None of the above
2. The following are useful source of evidence with regard the reasonableness of the client’s accounting estimation policy regarding the collectability of
A. Reviewing events happening after the balance sheet date but before the issuance of financial statements.
B. Sending confirmation letters to customers to determine the customer’s ability to settle their accounts.
C. Assessing the client’s historical experience in writing off uncollectible accounts in the prior years.
D. Determining the consistency of the client’s policy with the industry practice.
E. None of the above
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