The following audit procedure tests primarily which balance-related audit objective for accounts receivable: confirm accounts receivable, using positive confirmations.
A) existence
B) completeness
C) classification
D) all of the above

Question

Quizplus · Accepted Answer

Confirming accounts receivable using positive confirmations primarily tests the existence objective, as it verifies whether the balances recorded in the accounts receivable ledger are supported by the existence of corresponding customer receivables. However, this procedure may also provide some evidence for completeness since it helps to ensure that all significant receivables are included in the financial statements. It does not directly address the classification objective.

The Following Audit Procedure Tests Primarily Which Balance-Related Audit Objective