The understatement of sales and accounts receivable is best uncovered by:
A) confirming receivables.
B) reviewing the aged trial balance.
C) test of transactions for shipments made but not recorded.
D) reconciling the accounts receivable general ledger account with the schedule of accounts receivable.

Question

Quizplus · Accepted Answer

Testing transactions for shipments made but not recorded helps identify sales that have occurred but were not recorded, thus uncovering any understatement of sales and accounts receivable.

The Understatement of Sales and Accounts Receivable Is Best Uncovered