Question
1.) The accounts receivable section of the accounting department should open incoming mail and post collections to the customers accounts. True False 2.)The person maintaining
1.) The accounts receivable section of the accounting department should open incoming mail and post collections to the customers accounts. |
True
False
2.)The person maintaining the accounts receivable subsidiary ledger should reconcile the subsidiary ledger to the accounts receivable controlling account at least once a month.
True
False
3.) Tracing a sample of shipping documents to recorded sales is designed to test the existence of recorded sales. |
True
False
4.) The auditors should mail confirmation requests, and the enclosed envelope for the customer's reply should be addressed to the auditors' office. |
True
False
5.) Since customers that cannot pay are ordinarily asked not to reply, mailing of confirmations is a test of collectibility of accounts receivable. |
True
False
6.) The auditors should perform alternative auditing procedures on all negative confirmation requests that are not returned. |
True
False
7.) The auditors will generally confirm a proportionately larger sample of accounts with large balances than accounts with small balances. |
True
False
8.) Accounts with zero balances and accounts that have been written off as uncollectible are not confirmed by the auditors. |
True
False
9.) When it is "impossible" to confirm accounts receivable, the auditors can never issue an unmodified opinion on the client's financial statements. |
True
False
10.) Inspection of notes receivable is adequate evidence of the existence of the notes. |
True
False
11.) The best evidence of interest revenue on notes receivable is confirmation with the maker of the note. |
True
False
12.) Accounts receivable that are pledged as collateral for loans should be reclassified as noncurrent assets. |
True
False
13.) A note receivable from an officer is considered a related party receivable. |
True
False
14.)
Receivables judged to be uncollectible should be written off. |
True
False
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