What should the COE consider when documenting the mathematical accuracy of an accounts receivable listing made up of 1000 lines?
Understand the Problem
The question is asking what considerations the COE team should take into account when documenting the mathematical accuracy of an accounts receivable listing that contains 1000 lines from ABC Corp. It presents several options to choose from regarding best practices for ensuring accuracy.
Answer
Document the listing agrees to the trial balance.
Document the listing agrees to the trial balance.
Answer for screen readers
Document the listing agrees to the trial balance.
More Information
Ensuring the accounts receivable listing agrees with the trial balance helps verify the accuracy and completeness of financial records.
Tips
A common mistake is failing to cross-verify the listing with the trial balance, which might lead to discrepancies in financial statements.
Sources
- Audit procedures - Trade debtors - Croner-i Tax and Accounting - library.croneri.co.uk
- Substantive audit Receivables.pdf - Course Hero - coursehero.com
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