An aged trial balance of accounts receivable is normally used by the auditor to
A) verify the existence of recorded receivables.
B) ensure that all accounts are promptly credited.
C) evaluate the results of tests of controls.
D) evaluate the provision for bad debts.

Question

Quizplus · Accepted Answer

An aged trial balance of accounts receivable provides the auditor with information about the age of outstanding receivables and helps in evaluating the adequacy of the provision for bad debts. It also allows the auditor to identify any potentially uncollectible balances that may need to be written off or adjusted.

An Aged Trial Balance of Accounts Receivable Is Normally Used