Customers having substantial year-end past due balances fail to reply after second request forms have been mailed directly to them.Which of the following is the most appropriate audit procedure?
A) Examine shipping documents.
B) Review collections during the year being examined.
C) Intensify the study of the client's system of internal control with respect to receivables.
D) Increase the balance in the allowance for uncollectible accounts.

Question

Quizplus · Accepted Answer

Examining shipping documents can help verify whether the goods were actually shipped and received by the customer, which can provide evidence regarding the validity of the receivables.

Customers Having Substantial Year-End Past Due Balances Fail to Reply