The following audit procedures are consistent with gathering evidence about the valuation assertion of a client's accounts receivable balance, except: a. Inquiry with the management with regard the client policy of providing allowance for doubtful accounts. b. Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance. c. Recomputation of the client's aging schedule and the required allowance for doubtful accounts. d. Testing the reasonableness of the client's estimation policy in determining the portion of the receivables that are doubtful of collection. e. 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: a. Inquiry with the management with regard the client policy of providing allowance for doubtful accounts. b. Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance. c. Recomputation of the client's aging schedule and the required allowance for doubtful accounts. d. Testing the reasonableness of the client's estimation policy in determining the portion of the receivables that are doubtful of collection. e. None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following
a. Inquiry with the management with regard the client policy of providing allowance for doubtful accounts.
b. Vouching entries in the sales journal to the delivery receipt to test the propriety of the sale transaction and the resulting receivable balance.
c. Recomputation of the client's aging schedule and the required allowance for doubtful accounts.
d. Testing the reasonableness of the client's estimation policy in determining the portion of the receivables that are doubtful of collection.
e. None of the above.
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