The auditor has a balance-related audit objective to determine that accounts receivable are appropriately aggregated, and related financial statement disclosures are relevant and understandable. Which of the following audit procedures would the auditor not perform in connection with this audit objective?
A) Trace receivables from related parties on the aged trial balance to proper disclosure in the footnotes to the financial statements.
B) Read footnote disclosures made by management related to accounts receivable.
C) Evaluate footnote disclosures made by management for related party receivables.
D) Use audit software to foot and cross-foot the aged accounts receivable trial balance.

Question

Quizplus · Accepted Answer

Using audit software to foot and cross-foot the aged accounts receivable trial balance is a substantive audit procedure that would help the auditor determine if accounts receivable are appropriately aggregated. The other answer choices are also relevant to the audit objective of determining that accounts receivable are appropriately aggregated and related financial statement disclosures are relevant and understandable.

The Auditor Has a Balance-Related Audit Objective to Determine That