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

Auditors normally select balances to confirm from the accounts receivable listing because this is the most relevant way of ensuring that the balances recorded in the general ledger are accurate. The sales journal only provides information on sales, and the cash receipts listing only shows cash received, whereas the accounts receivable listing includes all customers who owe the company money, giving a complete picture of the revenue and collection cycle.

When Auditing the Revenue and Collection Cycle, Auditors Normally Select