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Auditing questions help needed. as soon as possible. Your audit client has a December 31 year-end. The total accounts receivable balance for your client is
Auditing questions help needed. as soon as possible.
Your audit client has a December 31 year-end. The total accounts receivable balance for your client is $10,000,000. The internal controls are considered to be fairly strong for the recording of accounts receivable. 50% of the accounts receivable balance is made up of 100 customers. The remaining 50% of the balance is made up of several thousand customers. In this situation explain each of the following: What type of confirmations are you going to use for testing accounts receivable, how many will you send out (i.e., what will be your sample size), and what will be the make- up of your sample? Explain why you came to the conclusion you did. As of what date will you confirm the customers' AR balances (i.e., as of an interim date or as of the balance sheet date)? Explain why you came to the conclusion you did. If you do not receive replies to the confirmations you send out, what are you going to do to become comfortable with the customers' accounts receivable account balances? List all of the procedures you would performStep by Step Solution
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