Which of the following procedures would an auditor most likely perform for year-end accounts receivable confirmations when the auditor did not receive replies to second requests?
A)Review the cash receipts journal for the month prior to the year-end.
B)Intensify the study of the internal control structure concerning the revenue cycle.
C)Increase the assessed level of detection risk for the existence assertion.
D)Inspect the shipping records documenting the merchandise sold to the debtors.

Question

Quizplus · Accepted Answer

Inspecting the shipping records documenting the merchandise sold to the debtors is a common alternative procedure when auditors do not receive replies to accounts receivable confirmations. This helps verify the existence and accuracy of recorded receivables by providing evidence that the sales transactions actually occurred.

Which of the Following Procedures Would an Auditor Most Likely