The Auditor's Primary Concern in Performing Audit Procedures of the Write-Off

question 106

Multiple Choice

The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes offs customer accounts that have already been collected.The primary control for preventing this fraud is:

• A)examining authorized credit memos.
• B)examining the uncollectible account authorization form.
• C)examining debit memos.
• D)examining the vouchers payable register.

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Definitions:

Preceding Year

The year that immediately comes before the current year in a chronological sequence.

Unusual Item

An uncommon or rare financial transaction or event that is reported separately in financial statements due to its significance.

Current Operations

Activities directly related to the day-to-day running of a business, including sales, production, and administrative tasks that influence the company's current profitability.

Industry Averages

Statistical measures that represent the average performance or benchmark for companies in a particular industry, often used for comparison and analysis.