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Realizable value is an essential balance-related audit objective for accounts receivable because ...

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Realizable value is an essential balance-related audit objective for accounts receivable because ...

Realizable value is an essential balance-related audit objective for accounts receivable because collectibility of receivables is often a significant concern. Which of the following is not an internal control the auditor should evaluate to reduce the likelihood of uncollectible accounts?

▸ customer credit approval by appropriate personnel

▸ preparation of an aged trial balance reviewed and followed up by appropriate management personnel

▸ a written policy of writing off uncollectable receivables

▸ All of these are internal controls the auditor should evaluate.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

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