Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Ahmed, as an auditor for Al Saf traders has found that the sales were reported in the Income statement as RO 158,552. Since he
2. Ahmed, as an auditor for Al Saf traders has found that the sales were reported in the Income statement as RO 158,552. Since he is skeptical about the sales, he is considering to conduct suitable audit procedure by using the information from financial statements. He noted down the following information from the financial statements.
Al Saf Traders sold 25% of goods for cash during the year. The opening Balance of the Accounts Receivables were RO 18,755 and the Closing Balance was RO 24,332. Al Saf Traders have written RO 2,355 Bad debts during the year and given a cash discount of RO 1,023 for the customers for earlier payment. Cash collected from Accounts receivables during the year was RO 108,345.
Ahmed finds that there is a material misstatement in the Sales. Do you agree with Ahmed? Show necessary working for your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started