Audit Documents Often Include an Aged Trial Balance of Accounts

question 38

Multiple Choice

Audit documents often include an aged trial balance of accounts receivable as of the balance sheet date. This aging is used by the auditor to:

• A)evaluate internal control over credit sales.
• B)test the accuracy of recorded credit sales.
• C)evaluate the allowance for doubtful accounts.
• D)verify the existence of the recorded receivables.

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Definitions:

False Consensus

The cognitive bias of overestimating how much others share our beliefs, attitudes, and behaviors.

Narcissistic

Pertaining to, exhibiting, or characterized by narcissism, which is excessive self-focus, self-admiration, and a lack of empathy for others.

Self-esteem

The degree to which a person values themselves or feels worthy, which impacts their motivation and psychological well-being.

Criticism

The expression of disapproval based on perceived faults or mistakes.