The account balance audit objective, "Accounts receivable represent gross claims on customers at balance date and agree with the sum of the accounts receivable subsidiary ledger", is derived from the assertion category of:
A) existence or occurrence.
B) completeness.
C) rights and obligations.
D) valuation and allocation.

Question

Quizplus · Accepted Answer

This objective relates to ensuring that the accounts receivable balance is accurately recorded and valued, which aligns with the valuation and allocation assertion. It ensures that the gross claims on customers are correctly summed up and reflected in the financial statements.

The Account Balance Audit Objective, "Accounts Receivable Represent Gross Claims