The Audit Working Papers Often Include a Client-Prepared, Aged Trial

question 107

Multiple Choice

The audit working papers often include a client-prepared, aged trial balance of accounts receivable as of the balance sheet date.This aging is BEST used by the auditor to:

• A) evaluate internal control over credit sales.
• B) estimate credit losses.
• C) test the accuracy of recorded charge sales.
• D) verify the validity of the recorded receivables.

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Definitions:

Processor

The central unit in a computer or mobile device that interprets and executes instructions, often referred to as a CPU (Central Processing Unit).

Logic Input

A signal or data received by a system, upon which logical decisions are based to control outputs or processes.

Momentary Actuation

A temporary action or operation of a device, typically requiring human interaction, such as pressing a button that returns to its original state after release.

Fan Off Button

A control feature on devices or machinery that allows users to manually turn the cooling fan off.