Question

One objective of audit of a water utility for a small city is todetermine whether all customers are being billed. Select the best“direction of testing” from the options below and explain why youselected that option.

(a) Meter Department records to the sales register.

(b) Sales Register to the meter department records.

(c) Accounts receivable ledger to the sales register.

(d) Sales Register to the Accounts receivable ledger

(Points : 30) Essay question for final exam onExternal Auditing,



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