The following is a copy of the auditors working paper for auditing accounts receivable balances for the
Question:
The following is a copy of the auditor’s working paper for auditing accounts receivable balances for the client New Millennium Ecoproducts. It shows the details of the cut-off tests.
Required
(a) Find the details of the transactions selected for cut-off tests. Why would these transactions be selected for testing?
(b) Explain how the auditor has used documents to test the details of the transactions. Why are these documents relevant to the tests?
(c) Have any errors or misstatements been revealed by the cut-off tests in this example?
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Step by Step Answer:
a To test for cutoff assertion the sales transaction occurring at around the period end immediately ...View the full answer
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Related Book For 
Auditing A Practical Approach
ISBN: 978-1118849415
2nd Canadian edition
Authors: Fiona Campbell, Robyn Moroney, Jane Hamilton, Valerie Warren
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