The understatement of sales and accounts receivable is BEST uncovered by:
A) reviewing the aged trial balance.
B) reconciling the accounts receivable general ledger account with the schedule of accounts receivable.
C) test of transactions for shipments made but not recorded.
D) confirming receivables.

Question

Quizplus · Accepted Answer

Test of transactions for shipments made but not recorded directly addresses the issue of understatement by identifying sales and receivables that should have been recorded but were not.

The Understatement of Sales and Accounts Receivable Is BEST Uncovered