The most effective audit evidence gathered for accounts receivable is the
A) detail tie-in of the records.
B) analysis of the allowance for doubtful accounts.
C) confirmation of accounts receivable.
D) examination of sales invoices.

Question

Quizplus · Accepted Answer

Confirmation of accounts receivable provides the most reliable and persuasive audit evidence for accounts receivable. It involves obtaining direct communication from the customer(s) to verify the accuracy and completeness of the recorded amounts. This evidence is objective, external and independent, and thus provides higher assurance than other forms of evidence such as internal documentation or analysis.

The Most Effective Audit Evidence Gathered for Accounts Receivable Is