In determining the adequacy of the allowance for uncollectible accounts, the least valuable evidence would be obtained from:
A)an aging schedule of past due accounts that the auditor has tested.
B)correspondence with the client's collection agency.
C)financial statements of individual customers.
D)no reply to negative confirmations.

Question

Quizplus · Accepted Answer

Negative confirmations, where the recipient is asked to respond only if they disagree with the information provided, are considered less reliable evidence compared to other options. This is because the lack of response does not necessarily confirm the accuracy of the account balance, as it could be due to the recipient overlooking the request or choosing not to respond for other reasons.

In Determining the Adequacy of the Allowance for Uncollectible Accounts