When auditing the revenue and collection cycle,auditors normally select balances to confirm from the
A) Sales journal.
B) Accounts receivable listing.
C) General ledger.
D) Cash receipts listing.

Question

Quizplus · Accepted Answer

The best choice for selecting balances to confirm when auditing the revenue and collection cycle is the accounts receivable listing, as this provides a comprehensive list of all outstanding customer balances. The sales journal only shows the sales transactions and not the outstanding balances, while the general ledger provides a summary of all transactions but not the details of individual customer balances. The cash receipts listing may not be as relevant for confirming balances as it primarily shows the inflows of cash, which may not necessarily represent all outstanding amounts.

When Auditing the Revenue and Collection Cycle,auditors Normally Select Balances