In Determining the Adequacy of the Allowance for Uncollectible Accounts

question 12

Multiple Choice

In determining the adequacy of the allowance for uncollectible accounts, the least valuable evidence would be obtained from:

• A)an aging schedule of past due accounts that the auditor has tested.
• B)correspondence with the client's collection agency.
• C)financial statements of individual customers.
• D)no reply to negative confirmations.

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Definitions:

Quota Sampling

A sampling method where the selection of participants is based on pre-specified characteristics or quotas to ensure representation.

Nonprobability Sampling

A sampling technique where the samples are gathered in a process that does not give all the individuals in the population equal chances of being selected.

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being selected, minimizing bias in the sample collected.

Exit Polling

A survey of voters taken immediately after they have exited the polling stations, primarily used to predict election outcomes before the official count.