auditing

The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below:

Questions:

a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. (3 marks)

b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15,000.(4 marks)

Done Assignment Instructions (Summer 1 2021)_8bf9b736f62983540d3c205a2e4cbb59 ormation on sales and accounts receivable is included below: Year Ended Year Ended 12/31/11 12/31/10 Sales $ 12,169,876 $ 10,452,513 Accounts Receivable 1,440,381 1,030,933 Allowance for doubtful accounts 90,000 75,000 Bad debt charge-offs 114,849 103,471 Accounts Receivable: 0-30 days 897,035 695,041 30-60 days 254,269 160,989 60-90 days 171,846 105,997 Over 90 days 117,231 68,906 TOTAL $ 1,440,381 $ 1,030,933 . Identify what tests of controls and substantive tests of transactions you recommen performed before conducting your analysis of the allowance for doubtful account . Perform analytical procedures to evaluate whether the allowance is fairly state December 31, 2011. Assume tolerable misstatement for the allowance accoui $15,000