An auditor's purpose in reviewing credit ratings of customers with delinquent accounts receivable most likely is to obtain evidence concerning management's assertions about
A) Valuation and allocation.
B) Completeness.
C) Existence.
D) Rights and obligations.

Question

Quizplus · Accepted Answer

The auditor reviews credit ratings to assess the likelihood of collection, which relates to the valuation and allocation assertion, ensuring that accounts receivable are reported at their net realizable value.

An Auditor's Purpose in Reviewing Credit Ratings of Customers with Delinquent