Discuss the audit procedures performed when testing the detail tie-in objective for accounts receivable, and explain why this objective is ordinarily tested before any other objectives for accounts receivable
What will be an ideal response?
When testing the detail tie-in objective for accounts receivable, the total column and the columns depicting the aging on the aged trial balance must be test footed, and the total on the trial balance is compared with the general ledger. In addition, a sample of individual balances on the aged trial balance should be traced to supporting documents, such as duplicate sales invoices, to verify the customer's name, balance, and proper aging.
Auditors test the information on the aged trial balance for detail tie-in before any other tests to verify that the population being tested agrees with the general ledger and accounts receivable master file.
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