Which of the following audit procedures would normally be included in the audit plan when auditing the allowance for doubtful accounts?
A) Send positive confirmations.
B) Inquire of the client's credit manager.
C) Send negative confirmations.
D) Examine sales invoices.

Question

Quizplus · Accepted Answer

Inquiring of the client's credit manager is a common procedure in auditing the allowance for doubtful accounts, as it helps the auditor understand the client's process for determining the allowance and assessing the adequacy of the allowance based on the credit manager's knowledge of customer creditworthiness and payment history.

Which of the Following Audit Procedures Would Normally Be Included