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The Most Effective Audit Procedure for Determining If an Account

Question 20

Multiple Choice

The most effective audit procedure for determining if an account receivable will be collected is:


A) Examination of cash collections subsequent to the year end.
B) Examination of sales invoice(s) .
C) Confirmation of the account.
D) The review of the customer's file to determine previous collection experience and to check sales orders from the customer for evidence credit approval.

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