Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 60

What would be used to determine the collectability of accounts receivable balances?

Answer options

• A. The file of related shipping documents.
• B. Negative accounts receivable confirmations.
• C. Positive accounts receivable confirmations.
• D. An aged accounts receivable listing.

Correct answer: D

Explanation

The correct answer, D, is an aged accounts receivable listing, which helps identify overdue accounts and evaluate their collectability based on aging categories. Options A, B, and C do not provide a systematic approach to assess collectability as effectively as an aged listing does.