Biology Forums - Study Force

When an auditor tests to determine if all existing accounts receivable are included in the aged trial balance,

▸ they cannot rely on the self-balancing nature of the accounts receivable master file.

▸ if all sales to a customer are omitted from the sales journal, it is easy to uncover the understatement of accounts receivable by tests of details of balances.

▸ auditors rarely send accounts receivable confirmations to customers with zero balances.

▸ unrecorded sales to a new customer are easy to identify for confirmation because that customer is included in the accounts receivable master file.

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