A substantive test for accounts receivable could include verifying accounts receivable and
the related allowance account is to trace the current period's opening balances to the
closing audited balances in the previous year's working papers.

Question

Quizplus · Accepted Answer

This is a valid substantive test for accounts receivable as it involves tracing the opening balances of the current period's accounts receivable and allowance accounts to the closing audited balances of the previous year, which helps to ensure the accuracy and completeness of the balances recorded in the current year.

A Substantive Test for Accounts Receivable Could Include Verifying Accounts