To validate sales revenue and accounts receivable, the auditor could _______.
A)send confirmations to accounts payable holders
B)attempt to reconcile the differences between gross and net sales
C)use the allowance for doubtful accounts account as a substantive test
D)request that the internal audit function sign off on its accuracy

Question

Quizplus · Accepted Answer

The allowance for doubtful accounts is directly related to accounts receivable and can be used as a substantive test to validate the accuracy of sales revenue and accounts receivable.

To Validate Sales Revenue and Accounts Receivable, the Auditor Could