An auditor needs to determine whether all customers of an electric utility company are being billed. The auditor should test from the
A) sales register to the accounts receivable ledger.
B) sales register to the meter department records.
C) accounts receivable ledger to the sales register.
D) meter department records to the sales register.

Question

Quizplus · Accepted Answer

The best choice is to test from the meter department records to the sales register. This will ensure that all customers who have had meters read and recorded are being billed accurately. Testing from the sales register to the accounts receivable ledger may not always capture all customers, as some may have outstanding balances or payment plans. Testing from the accounts receivable ledger to the sales register may not be effective because not all customers who owe money may be included in the sales register.

An Auditor Needs to Determine Whether All Customers of an Electric