Which of the Following Is Not a Primary Objective of the Auditors

question 33

Multiple Choice

Which of the following is not a primary objective of the auditors in the examination of accounts receivable?

• A)Determine the approximate realizable value.
• B)Consider the adequacy of internal control.
• C)Establish the existence of receivables.
• D)Determine the expected day of collection of each of the receivables.

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Definitions:

Credit Card

A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.

Journal Entry

A record of financial transactions in the accounting books, indicating the accounts and amounts debited and credited.

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected to turn into bad debts.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered an expense on the income statement.