An aged trial balance of accounts receivable is usually used by the auditor to:
A)verify the existence assertion for recorded receivables.
B)ensure that all accounts receivable are recorded (completeness assertion).
C)evaluate the results of tests of controls for the sales/accounts receivable system.
D)evaluate the provision for bad debts related to the valuation and allocation assertion.

Question

Quizplus · Accepted Answer

An aged trial balance of accounts receivable helps the auditor evaluate the adequacy of the provision for bad debts, which is related to the valuation and allocation assertion. It provides information on how long receivables have been outstanding, which can indicate the likelihood of collection and thus the appropriateness of the bad debt provision.

An Aged Trial Balance of Accounts Receivable Is Usually Used