Corroborate or refute AR is stated at reasonable Net Realizable Value
AGING AR
ACL, AGE [see Table 9-7]
Is allowance for doubtful accounts reasonable compared to prior years and based on composition of AR portfolio
Confirmation process will be ineffective
Review past-due balances
Conference with credit manager to determine collectibility
Determine if methods used to estimate allowance for doubtful accounts is adequate, not the collectibility of each account
Determine if overall allowance is, therefore, reasonable