Question: Access any company that you would like to research via the Internet and look up the company's latest financial statements. Please choose a different company than you have access thus far.
Select either Accounts Receivable or Inventory balances. Indicate the amount of the balance for the latest year end and the previous year end.
Situation:
1. This company is a first year client.
2. The partner of your firm has indicated that he would like to know how you would audit accounts receivable or inventory.
3. Prepare a short memo on you audit approach. That is, write at least fives steps that you would use to audit this balance. Specifically indicate the type of sampling method that you would use and why.