In which order would the auditor perform the seven procedures? Briefly justify your answer.
1) Select 20 customer accounts from the accounts receivable database and trace to the aged accounts receivable listing to verify name and amount.
2) Select 20 customer accounts from the aged accounts receivable listing and trace to the accounts receivable database for name, amount, and aging categories.
3) Prepare a bar chart showing amounts and percentages of accounts receivable in each aging category for the current and prior year and evaluate trends.
4) Obtain a list of aged accounts receivable, foot and cross-foot the list using audit software, and trace the total to the general ledger.
