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

question 54

Multiple Choice

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

• A)Consider internal control over credit sales.
• B)Test the accuracy of recorded charge sales.
• C)Estimate credit losses.
• D)Verify the validity of the recorded receivables.

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Definitions:

Bureaucratic Rules

Formalized guidelines and procedures designed to standardize operations, often within a large organization or government agency.

Top Management

Pertains to the highest level of executives who are responsible for the overall direction and strategy of an organization.

Organizational Environment

The external and internal factors that influence an organization's operations, such as economic conditions, competitors, and company culture.

Team Effectiveness

The degree to which a team achieves its goals, meets its members' needs, and sustains itself over time.