Accounting · Auditing
Which of the following audit procedures is most appropriate to perform post year-end to form a conclusion on whether an outstanding disputed receivable balance requires a bad debt adjustment or provision?
- 1Re-agreeing the outstanding balance back to initial purchase orders.
- 2Sending a new standard circularization request to confirm the historical balance.
- 3Reviewing the post year-end cash book and bank statements for subsequent receipts from the debtor.✓
- 4Discussing with management the general layout of the financial statements.
Correct answer
Reviewing the post year-end cash book and bank statements for subsequent receipts from the debtor.
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