A CPA auditing an electric utility wishes to determine whether all customers are being billed. The CPA's best direction of test is from the
A) Meter department records to the billing (sales) register.
B) Billing (sales) register to the meter department records.
C) Accounts receivable ledger to the billing (sales) register.
D) Billing (sales) register to the accounts receivable ledger.

Question

Quizplus · Accepted Answer

To ensure all customers are billed, the CPA should trace from the meter department records, which show actual usage, to the billing register to verify that all recorded usage results in a bill.

A CPA Auditing an Electric Utility Wishes to Determine Whether