The auditor's primary concern in performing audit procedures of the write-off of uncollectible accounts relates to the risk that the client writes offs customer accounts that have already been collected.The primary control for preventing this fraud is:
A)examining authorized credit memos.
B)examining the uncollectible account authorization form.
C)examining debit memos.
D)examining the vouchers payable register.

Question

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Examining the uncollectible account authorization form is the best choice as this is the primary control for preventing the fraud of writing off customer accounts that have already been collected. This form should contain evidence of why the account is uncollectible and must be approved by appropriate personnel. By examining this form, the auditor can ensure that the write-off is appropriate and not fraudulent. Examining authorized credit memos or debit memos or the vouchers payable register may not provide sufficient evidence related to the uncollectible account authorization process.

The Auditor's Primary Concern in Performing Audit Procedures of the Write-Off