For some audit objectives and in some circumstances,analytical procedures may be the most effective procedure to apply.The objectives that most likely would benefit from the use of analytical review with respect to the allowance for uncollectible accounts would be
A)validity of sales transactions recorded for individual customer accounts.
B)classification and completeness of transactions,accuracy of judgments and estimates.
C)collectability of individual customer account balances.
D)allocation of transactions to the proper accounting period.

Question

Quizplus · Accepted Answer

Analytical review procedures can be helpful in assessing the collectability of individual customer account balances, as they involve comparing account balances with historical trends, industry benchmarks, or other relevant data. This type of analysis can provide insights into the adequacy of the allowance for uncollectible accounts, which is a critical estimate used in determining the net realizable value of accounts receivable. While the other objectives listed may also benefit from analytical procedures, they are not as directly related to the allowance for uncollectible accounts.

For Some Audit Objectives and in Some Circumstances,analytical Procedures May