The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes off customer accounts that have already been collected. The primary control for preventing this fraud is
A) examining authorized credit memos.
B) examining the uncollectible account authorization form.
C) examining debit memos.
D) examining the vouchers payable register.

Question

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The primary control for preventing the fraud of writing off customer accounts that have already been collected is examining the uncollectible account authorization form. This form should contain evidence of management's approval of the write-off and supporting documentation regarding the collection efforts made for the account. Examining authorized credit memos and debit memos would not specifically address the risk of writing off already collected accounts, and examining the vouchers payable register would not be relevant to this risk.

The Auditor's Primary Concern in Performing Audit Procedures of the Write-Off