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:

Elasticities of Demand

A measure of how much the quantity demanded of a good responds to a change in price, indicating the sensitivity of consumers to price changes.

Economic Incentive

A financial or material benefit that motivates individuals or businesses to act in certain ways or pursue particular courses of action.

Price Discrimination

A method of pricing in which a provider charges different prices for virtually identical goods or services in different market areas.

Electric Heating

A system of converting electric energy into heat for warming indoor spaces, typically regarded as more efficient than traditional heating methods.