Question

The most effective audit evidence gathered for accounts receivable is the?

1) detail tie-in of the records
2) analysis of the allowance for doubtful accounts
3) confirmation of accounts receivable
4) examination of sales invoices

Answer 1

Confirmation of accounts receivable is the most effective audit evidence for accounts receivable.

Step-by-step explanation:

The most effective audit evidence gathered for accounts receivable is confirmation of accounts receivable. This involves sending requests to customers directly to verify the amount they owe. Confirmation provides independent, external evidence of the existence and validity of the accounts receivable.