The following are common tests of details of balances or


The following are common tests of details of balances or analytical procedures for the audit of accounts receivable:

1. Request 30 positive and 50 negative confirmations of accounts receivable.
2. Select 10 customer accounts from the accounts receivable master file and trace to the aged accounts receivable listing to verify name and amount.
3. Select 10 customer accounts from the aged accounts receivable listing and trace to the accounts receivable master file for name, amount, and aging categories.
4. Obtain a list of aged accounts receivable, foot and cross foot the list, and trace the total to the general ledger.
5. Compute accounts receivable turnover for the current year and compare to the prior year.
6. Perform alternate procedures on accounts not responding to second requests by examining subsequent cash receipts documentation and shipping reports or sales invoices.
a. For each audit procedure, identify the balance-related audit objective or objectives it partially or fully satisfies.
b. In which order would the audit perform the above procedures? Briefly justify your answer.

Solution Preview :

Prepared by a verified Expert
Auditing: The following are common tests of details of balances or
Reference No:- TGS01179356

Now Priced at $12 (50% Discount)

Recommended (94%)

Rated (4.6/5)