A client has a separate sales group for its largest preferred customers, a select group of customers who normally make purchases in excess of $ 250,000 and often have accounts receivable balances in excess of $ 1 million Which of the following audit procedures would the auditor most likely perform ...

a Incorrect A schedule of purchases and payments would be used to test transactions and ...

A client has a separate sales group for its largest preferred customers, a select group of customers

Question:

A client has a separate sales group for its largest “preferred” customers, a select group of customers who normally make purchases in excess of $ 250,000 and often have balances in excess of $ 1 million. Which of the following audit procedures would the auditor most likely perform?
a. Prepare a schedule of purchases and payments for these customers.
b. Send out negative confirmations on a large sample of these customers.
c. Inquire of the sales manager regarding the terms.
d. Send out positive confirmations on a large sample of these customers.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...