Once an Auditor Has Determined That Accounts Receivable at Year-End

Multiple Choice

Once an auditor has determined that accounts receivable at year-end have increased due to slow collections in a 'tight money' environment, the auditor would be likely to:

A) review the going concern ramifications.
B) increase the balance in the allowance for bad debts account.
C) expand tests for the valuation and allocation assertion.
D) expand tests for the existence assertion.