Before goods are shipped, a properly authorized person must approve credit to the customer for sales on account. Weak practices in credit approval often result in excessive bad debts and accounts receivable that may be uncollectible.

Required: a. Identify the audit objective(s) will be fulfilled when auditing account receivable if the internal control of approving credit to customer for sales on account is in effect. b. Explain how to test the allowance for uncollectible accounts and bad debt expense?