The Audit Procedure That Provides the Auditor with the Most

question 86

Multiple Choice

The audit procedure that provides the auditor with the most appropriate evidence when performing test of details of balances for accounts receivable is

• A) confirmations.
• B) recalculation of the aged receivables and uncollectible accounts.
• C) tracing credit memos for returned merchandise to receiving room reports.
• D) tracing from shipping documents to journals to the accounts receivable ledger.

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Definitions:

Procedural Justice

The fairness and transparency of the processes used by authorities to make decisions, often judged based on consistency, bias suppression, accuracy, correctability, and representativeness.

Multiplicative Relationship

A situation or equation in which one variable increases as a result of increasing another variable by a specific factor or multiplier.

Performance

Relates to the execution and outcome of tasks or actions and is often measured against established standards or objectives.

Ability

The possession of the means or skill to do something.