Required:

Your client is All's Fair Appliance Company, an appliance wholesaler. Select the most appropriate audit procedure from the following

list and enter the number in the appropriate place on the grid. $($Each audit procedure will be used once and only once.$)$

Audit Procedure:

Review of bank confirmations and loan agreements.

Review of drafts of the financial statements.

Select a sample of shipping documents, match them with related sales invoices, and determine that they have been included in the

sales journal and accounts receivable subsidiary ledger.

Select a sample of shipping documents for a few days before and after year$-$end.

Confirmation of accounts receivable.

Review of aging of accounts receivable with the credit manager.

Answer is complete but not entirely correct.