Which type of audit evidence can the auditor use in support of the accuracy of accounts receivable audit objective?
A) Examination of title for ownership of asset
B) Examination of invoice from vendor
C) Physical examination
D) Direct confirmation with customer

Question

Quizplus · Accepted Answer

Direct confirmation with customers is the best choice of audit evidence to support the accuracy of accounts receivable. This method involves sending a letter or email to the customers to confirm the balance owed and whether any disputes exist. It provides reliable and objective evidence of the accuracy of accounts receivable. The other options are not relevant as they are more suited for other audit objectives such as verification of ownership or existence of assets.

Which Type of Audit Evidence Can the Auditor Use in Support