Audit Objectives for Accounts Receivable A. Accounts receivable are authentic obligations owed to the company at the balance sheet date (assertions E/O, R/O, and V/A). B. Accounts receivable include all amounts owed to the company at the balance sheet date (assertion C). C. The allowance for doubtful accounts is adequate but not excessive. If the direct write-off method is used, all significant doubtful accounts have been written off, and the bad debt exposure in the remaining accounts is insignificant (assertions V/A and P/D). D. Pledged, discounted, or assigned accounts receivable are properly disclosed. Related party receivables are properly disclosed (assertions R/O and P/D). E. Accounts receivable are appropriately classified in the balance sheet, and required disclosures are made (assertion P/D).
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