An example of alternative procedures for the confirmation of accounts receivable includes which of the following actions?
A)Inquiry of management.
B)Tracing source documents to recorded amounts.
C)Review of subsequent collections on account by the client.
D)Providing an estimate of the allowance for doubtful accounts to be recorded by the client.

Question

Quizplus · Accepted Answer

Review of subsequent collections on account by the client is an alternative procedure for confirming accounts receivable when direct confirmation from the debtor is not possible or does not provide sufficient evidence. This method helps auditors assess the validity of the receivables by verifying that payments were actually received after the balance sheet date.

An Example of Alternative Procedures for the Confirmation of Accounts