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

question 40

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 entity's receivables are typically collected in less than 45 days.You anticipate that the entity's allowance for doubtful account should be increased and inform the entity about your disposition.Management disagrees.Is there an alternative substantive procedure that you could perform that would provide convincing evidence that this balance is collectible? If so,explain.

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Definitions:

Energy Consumption

The amount of energy utilized by devices, systems, or processes, often measured in joules, kilowatt-hours, or other energy units.

Absolute Income Gap

This term typically refers to the difference in absolute income levels between individuals, groups, or countries.

Per Capita Incomes

Refers to the average income earned per person in a given area (e.g., city, region, country) in a specified year.

Absolute Income Gap

The difference in total income or earnings between individuals, households, or countries, measured without adjusting for living costs or other factors.