The Audit Working Papers Often Include a Client-Prepared, Aged Trial

question 53

Multiple Choice

The audit working papers often include a client-prepared, aged trial balance of accounts receivable as at balance date.This ageing is best used by the auditor to:

• A)test the accuracy of recorded sales.
• B)assess control risk for credit sales.
• C)verify the existence of the recorded receivables.
• D)test the valuation and allocation assertion of accounts receivable.

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Definitions:

52-Card Deck

A standard deck of playing cards used in many card games, consisting of four suits: hearts, diamonds, clubs, and spades, each with 13 ranks from Ace through King.

Draw

To produce a picture or diagram by making lines and marks on paper with a pencil, pen, etc., or within the context of games, a result in which opponents finish with equal scores.

Spades

A suit in a standard deck of playing cards, identified by its black, pointed leaf shape symbol.

Dealt

Distributed or administered in a specific manner.