An operational audit report which deals with the accounts receivable department of a wholesaler is most likely to address:
A)The efficiency and effectiveness of the customer collections and include any findings requiring corrective action.
B)Whether accounts receivable is reported net of an allowance for uncollectible accounts.
C)Whether the major customer accounts receivable have been confirmed.
D)Whether the accounts receivable account includes any related party transactions.

Question

Quizplus · Accepted Answer

An operational audit report on the accounts receivable department of a wholesaler would typically focus on the efficiency and effectiveness of customer collections, including any findings that require corrective action. This would involve reviewing the processes and procedures for invoicing, billing, and collecting payments from customers, as well as identifying any areas where improvements can be made. The other options listed are also important considerations when auditing accounts receivable, but they are not the primary focus of an operational audit of the department.

An Operational Audit Report Which Deals with the Accounts Receivable