Which of the audit objectives is performed first when doing the tests of details of balances for accounts receivable?
A) Accounts receivable are owned.
B) Accounts receivable in the aged trial balance agree with related master file amounts, and the total is correctly added and agrees with the general ledger.
C) Existing accounts receivable are included.
D) Recorded accounts receivable exist.

Question

Quizplus · Accepted Answer

The first step in testing details of balances for accounts receivable is to ensure that the balances in the aged trial balance agree with the related master file amounts and that the total is correctly added and agrees with the general ledger. This ensures the accuracy and completeness of the records before further testing.

Which of the Audit Objectives Is Performed First When Doing