The Auditor Obtained an Aged List of Receivables and Traced

question 61

Multiple Choice

The auditor obtained an aged list of receivables and traced the accounts to the master file, footed the schedule, and traced the amounts to the general ledger. Which balance-related audit objective was met?

• A) existence
• B) cutoff
• C) detail tie-in
• D) all of the above

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Definitions:

Salesperson

An individual who is employed to sell products or services to customers, often working on commission.

Loss of Sale

A situation where a potential transaction does not occur, resulting in no revenue from that potential customer.

Competitor

A business or individual that competes in the same industry or field as another, offering similar products or services.

Potential Sales

The possible future sales achievable in a given market segment or with a certain customer base, often used in forecasting.