Question

An aged trial balance of accounts receivable is normally used by the auditor to ________.

1) verify the existence of recorded receivables
2) ensure that all accounts are promptly credited
3) evaluate the results of tests of controls
4) evaluate the provision for bad debts

Answer 1

An aged trial balance of accounts receivable is used by the auditor to verify the existence of recorded receivables.

Step-by-step explanation:

An aged trial balance of accounts receivable is normally used by the auditor to verify the existence of recorded receivables. It helps the auditor determine if the amounts recorded as accounts receivable actually exist and are valid. By comparing the balances on the aged trial balance to the accounts receivable subsidiary ledger, the auditor can ensure that all recorded receivables are accurate and accounted for.