Substantive tests must be designed to tests specific audit objectives.
REQUIRED: For the following specific audit procedures, indicate the assertion that is being tested. Use the following letters, placing your response in the space provideD.
-Test the aging of accounts receivable, discussing long-overdue accounts with the
credit manager.
A)Existence or occurrence
B)Completeness
C)Valuation or allocation
D)Rights and obligations
E)Presentation and disclosure

Question

Quizplus · Accepted Answer

Testing the aging of accounts receivable and discussing long-overdue accounts with the credit manager primarily aims to verify the valuation or allocation assertion. This procedure helps ensure that receivables are accurately valued and adequately provided for in terms of any necessary allowances for doubtful accounts.

Substantive Tests Must Be Designed to Tests Specific Audit Objectives