Which of the following procedures would you perform for an audit of accounts receivable at year-end?
A) Determine if any accounts have been factored or used as collateral for a loan.
B) Determine the adequacy of the allowance account.
C) Determine if there are any related party transactions.
D) All of the above.

Question

Quizplus · Accepted Answer

A) Determining if any accounts have been factored or used as collateral for a loan helps verify the completeness and accuracy of accounts receivable.
B) Determining the adequacy of the allowance account helps verify the valuation of accounts receivable.
C) Determining if there are any related party transactions helps verify the existence and accuracy of accounts receivable. 
Therefore, all of the above procedures are necessary for an audit of accounts receivable at year-end.

Which of the Following Procedures Would You Perform for an Audit