Assume You Are Working on a 12/31 Year-End Audit

question 24

Essay

Assume you are working on a 12/31 year-end audit.It is now March 31^st and the 12/31 accounts receivable aging shows a large receivable that was outstanding on 12/31 for 120 days.Further,the client's receivables are typically collected in less than 45 days.You anticipate that the client's allowance for doubtful account should be increased and inform the client about your disposition.The client disagrees.Is there an alternative substantive procedure that you could perform that would provide convincing evidence that this balance is collectible?
If so,explain.

---

Definitions:

Economics in Practice

The application of economic theories and principles to real-world scenarios and the analysis of actual economic practices.

Variable Input

In economics, any resource or factor of production whose quantity can be changed in the short term to influence output.

Society Values

The principles, standards, or ideals shared by members of a society regarding what is desirable or important.

Marginal Revenue Product

Incremental income produced from the application of one additional unit of resources such as labor or capital.