Which of the following procedures is least likely to help auditors to assess the adequacy of management's accounting estimate of the allowance for doubtful accounts? A)Investigate confirmation exceptions for indication of amounts in dispute. B)Review accounts which have been written off as uncollectible prior to year-end. C)Investigate credit ratings for large accounts receivable. D)Discuss with the credit manager the current status of doubtful accounts.

Question

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Reviewing accounts which have already been written off as uncollectible prior to year-end is least likely to provide auditors with information for assessing the adequacy of management's accounting estimate of the allowance for doubtful accounts. This is because once an account has been written off, it no longer affects the balance of the allowance account, which is based on estimates of accounts that are still outstanding. The other options, such as investigating confirmation exceptions, reviewing credit ratings, and discussing with the credit manager, are all procedures that could provide auditors with useful information on the adequacy of the allowance estimate.

Which of the Following Procedures Is least likely to Help