Because of its central role in auditing of accounts receivable, which of the following would normally be one of the first items tested?
A) accounts receivable master file
B) customer file
C) aged trial balance
D) sales register

Question

Quizplus · Accepted Answer

The aged trial balance is a report that provides a breakdown of accounts receivable by their respective ages (e.g. current, 30 days past due, 60 days past due, etc.). Testing this report is important as it allows auditors to ensure that accounts receivable are being properly recorded and that any overdue receivables are being accounted for appropriately. The other options may also be tested, but the aged trial balance would likely be one of the first items tested in the audit.

Because of Its Central Role in Auditing of Accounts Receivable