During the process of confirming receivables as of 30 June 2015, a positive confirmation was returned indicating the 'balance owed as of 30 June was paid on 9 July 2015'.The auditor would most likely:
A)determine whether a customary trade discount was taken by the customer.
B)determine whether there were any changes in the account between 1 July and 9 July 2015.
C)check subsequent cash receipts to confirm that the amount was received.
D)reconfirm the zero balance as of 9 July 2015.

Question

Quizplus · Accepted Answer

Checking subsequent cash receipts to confirm that the amount was indeed received is a direct way to verify that the payment mentioned in the confirmation was actually made, ensuring the accuracy of the receivables balance as of 30 June.

During the Process of Confirming Receivables as of 30 June