Which of the following is an exception report that the auditor would generate using generalised audit software in order to test the valuation and allocation assertion for accounts receivable?
A)Adding the accounts receivable ledger, and checking the total to the accounts receivable balance in the general ledger.
B)A sequence check looking for missing sales invoice numbers.
C)A report outlining those balances that are greater than three months overdue.
D)A sample of debtors to be confirmed by positive debtors' confirmation procedures.

Question

Quizplus · Accepted Answer

This report outlines those balances that are greater than three months overdue, which is an exception to the normal accounts receivable balances that would be expected. This report would help the auditor test the valuation and allocation assertion for accounts receivable by identifying balances that may be overstated or allocated to the wrong period. The other options listed are not exception reports specific to testing the valuation and allocation assertion for accounts receivable.

Which of the Following Is an Exception Report That the Auditor