Which of the following is likely to be determined first when performing tests of details for accounts receivable?
A) Recorded accounts receivable exist.
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) The client has a right to the accounts receivable.
D) Existing accounts receivable are included.

Question

Quizplus · Accepted Answer

When performing tests of details for accounts receivable, auditors often start by ensuring that the accounts receivable in the aged trial balance agree with related master file amounts, and that the total is correctly added and agrees with the general ledger. This step is fundamental as it verifies the accuracy and completeness of the accounts receivable records before assessing other aspects such as existence, rights, and inclusion.

Which of the Following Is Likely to Be Determined First