Realizable Value Is an Essential Balance-Related Audit Objective for Accounts

Multiple Choice

Realizable value is an essential balance-related audit objective for accounts receivable because collectibility of receivables is often a significant concern. Which of the following is not an internal control the auditor should evaluate to reduce the likelihood of uncollectible accounts?

A) customer credit approval by appropriate personnel
B) preparation of an aged trial balance reviewed and followed up by appropriate management personnel
C) a written policy of writing off uncollectable receivables
D) All of the above are internal controls the auditor should evaluate.