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:

SSE

Sum of Squared Errors, a measure used in statistics to quantify the discrepancy between the data and an estimation model.

MSR

Mean Square Regression, indicating the average of squared differences between the observed and predicted values in regression analysis.

Observations

Data collected or measured during a study, experiment, or survey.

Coefficient Of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).