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A client uses percentages of aging categories to calculate the allowance for doubtful accounts. When auditing the allowance for doubtful accounts, the auditor must Ensure

A client uses percentages of aging categories to calculate the allowance for doubtful accounts. When auditing the allowance for doubtful accounts, the auditor must

Ensure that the client has calculated the allowance for the current and all prior years using the same percentages for uncollectible accounts.

Ensure that the clients aging categories are consistent with industry averages.

Perform tests to ensure that the aging categories are accurate.

Perform tests to ensure that management has not exercised judgment when calculating the allowance for doubtful accounts.

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	Ensure that the client has calculated the allowance for the current and all prior years using the same percentages for uncollectible accounts.
	Ensure that the clients aging categories are consistent with industry averages.
	Perform tests to ensure that the aging categories are accurate.
	Perform tests to ensure that management has not exercised judgment when calculating the allowance for doubtful accounts.