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:

Pricing Practices

The methods and strategies businesses use to set and adjust prices for their products or services.

Standardize

To make uniform or consistent by adhering to a set standard or protocol, often to ensure quality or interoperability.

Trademarked Fishing Gear

Fishing equipment that is legally protected against unauthorized use because it bears a distinctive mark, symbol, or name owned by the creator.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of senior executives and costs of general services.