Which of the audit objectives is performed first when doing the tests of details of balances for accounts receivable?
A) Recorded accounts receivable exist.
B) Accounts receivable in the aged trial balance agree with related master file amounts and the total is correctly added and agrees with the general ledger.
C) Accounts receivable are owned.
D) Existing accounts receivable are included.

Question

Quizplus · Accepted Answer

The first step in testing details of balances for accounts receivable is to ensure that the balances in the aged trial balance agree with the master file and general ledger, as this provides a basis for further testing.

Which of the Audit Objectives Is Performed First When Doing