client that recently loosened its credit-granting policies uses percentages of aging ategories as the basis for the initial calculation of the allowance for doubtful ccounts. When auditing the allowance for doubtful accounts, the auditor must perform rocedures to ensure that... The percentages of aging categories used to calculate the allowance for the current year are identical to prior years. The client's aging categories are consistent with industry averages. The percentages of aging categories used to calculate the allowance were not impacted by managerial judgment. The outstanding invoices were aged correctly since the aging is the basis for calculating the allowance