Which of the Audit Objectives Is Performed First When Doing

question 65

Multiple Choice

Which of the audit objectives is performed first when doing the tests of details of balances for accounts receivable?

• A) Accounts receivable are owned.
• B) Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.
• C) Existing accounts receivable are included.
• D) Recorded accounts receivable exist.

---

Definitions:

Market Price

The existing price for buying or selling an asset or service in a particular market.

Profit

The financial gain realized when the revenue from business activities exceeds the costs and expenses associated with its operation.

Bales

Large bundles or packages of material, most commonly used in reference to agriculture commodities like hay or cotton.

Profit-maximizing

In economics, this refers to the process by which a firm determines the price and output level that returns the greatest profit.