XYZ has engaged you to do a special audit of its Accounts Receivable. The balance of...
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XYZ has engaged you to do a special audit of its Accounts Receivable. The balance of Accounts receivable as at December 31, 2019 is $20,000,000. Allowance for Uncollectible Accounts is $200,000 based on percentage of sales on account for the period. In addition, you found that Mr. Fat Nose, a prominent customer of XYZ has been declared bankrupt of $15,000. Required: Following the following steps in Audit Engagement to present your Audit Plan: 1. Engagement Planning and letter of engagement 2. Risk Assessment associated with the audit 3. Major procedure you will follow in investigating the three accounts mentioned in the case 4. Reporting of your audit findings. Be brief to the point on each of the above steps. XYZ has engaged you to do a special audit of its Accounts Receivable. The balance of Accounts receivable as at December 31, 2019 is $20,000,000. Allowance for Uncollectible Accounts is $200,000 based on percentage of sales on account for the period. In addition, you found that Mr. Fat Nose, a prominent customer of XYZ has been declared bankrupt of $15,000. Required: Following the following steps in Audit Engagement to present your Audit Plan: 1. Engagement Planning and letter of engagement 2. Risk Assessment associated with the audit 3. Major procedure you will follow in investigating the three accounts mentioned in the case 4. Reporting of your audit findings. Be brief to the point on each of the above steps. XYZ has engaged you to do a special audit of its Accounts Receivable. The balance of Accounts receivable as at December 31, 2019 is $20,000,000. Allowance for Uncollectible Accounts is $200,000 based on percentage of sales on account for the period. In addition, you found that Mr. Fat Nose, a prominent customer of XYZ has been declared bankrupt of $15,000. Required: Following the following steps in Audit Engagement to present your Audit Plan: 1. Engagement Planning and letter of engagement 2. Risk Assessment associated with the audit 3. Major procedure you will follow in investigating the three accounts mentioned in the case 4. Reporting of your audit findings. Be brief to the point on each of the above steps.
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1 Engagement planning and letter of engagement In the first step I will plan the audit engagement wi... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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