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's purpose in reviewing credit ratings of customers with delinquent accounts receivable is to obtain evidence concerning management's assertion about valuation and allocation. This is because the credit ratings can help the auditor assess the likelihood of the accounts receivable being recoverable or not, which in turn affects their value and allocation on the financial statements.

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