Which Audit Procedure Would Be Used to Test for the Existence

question 80

Multiple Choice

Which audit procedure would be used to test for the existence balance-related audit objective?

• A) Trace ten accounts from the aged trial balance to the accounts receivable master file.
• B) Confirm accounts receivable.
• C) Review large sales returns and allowances before and after the balance sheet date.
• D) Trace ten accounts from the trial balance to the accounts on the master file.

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Definitions:

Pairs

Sets of two things that are used together or are associated with each other.

Gram Stain

A method of staining that differentiates bacteria according to the chemical composition of their cell walls.

Cell Walls

Rigid or semi-rigid structures surrounding the cell membrane of plants, fungi, and bacteria, providing shape, protection, and support.

Chemical Composition

The identification and proportion of the elements or compounds that constitute a substance or material.