Describe how the auditor tests the accuracy objective for accounts receivable.

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Describe how the auditor tests the accuracy objective for accounts receivable.

Answer:

Confirmation of accounts selected from the trial balance is the most common test of details of balances for the accuracy of accounts receivable. When customers do not respond to confirmation requests, auditors examine supporting documents in the same way as described for the existence objective. Auditors perform tests of the debits and credits to individual customers’ balances by examining supporting documentation for shipments and cash receipts.

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