What Evidence Is Utilized by the Auditor for Analytical Purposes

question 94

Multiple Choice

What evidence is utilized by the auditor for analytical purposes in substantiating the allowance for bad debt estimate?

• A)Accounts receivable aging schedule
• B)Copies of checks received from customers.
• C)Confirmations returned without exception.
• D)Stock prices of customer companies.

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Definitions:

Covalent Bonds

A type of chemical bond where atoms share pairs of electrons.

Electrons

Subatomic particles with a negative electric charge, found in all atoms and acting as the primary carrier of electricity in solids.

Atomic Nuclei

The central core of an atom containing protons and neutrons, around which electrons orbit.

Element

Substance composed of atoms of only one kind.