Which of the following will an auditor not perform when looking for debt reductions?
A)Examine proceeds into the cash receipts records.
B)Examine canceled checks.
C)Examine payments through the cash disbursements records.
D)Examine canceled notes.

Question

Quizplus · Accepted Answer

Examining proceeds into the cash receipts records is not a method for looking for debt reductions. This action is more related to identifying incoming funds rather than tracking how debts are reduced. Debt reductions are typically identified through examining canceled checks, payments through cash disbursements records, and canceled notes, which directly relate to the repayment or settlement of debts.

Which of the Following Will an Auditor Not Perform When