BN&P, CPAs, are auditing a travel business. Various groups have booked tours, resulting in significant accounts receivable balances at year end. Because they have not had success with confirmations in the past, BN&P decide to perform an ADA with accounts receivable. Because the tours generally are paid for within a short time frame, they decide to examine cash receipts collected after year end to obtain assurance over accounts receivable. Using the ADA, they produced the following results:

Accounts Receivable at year end subject to testing		$5,465,000		100.0%
Cash collections equal accounts receivable		4,250,000		77.8%
Cash collections less than accounts receivable		575,000		10.5%
No cash collected		640,000		11.7%
		$5,465,000

Which of the following is accurate as it relates to this ADA test and its results? (Several choices may be correct.)

A. Testing cash collection provides evidence for the assertion of completeness

B. Test results indicate 77.8% of the accounts receivable was appropriately valued

C. Testing cash collection provides evidence for the assertion of valuation and allocation.

D. The 77.85% of cash collections equal to accounts receivable amounts is a notable item.

E. The 10.5% cash collections less than accounts receivable amounts is a notable item which does not require follow-up.

F. The $640,000 of accounts receivable which was not collected is a notable item that requires follow-up.

G. The 10.5% cash collections which were less than accounts receivable is an error which must be written off.

H. Notable items identified will require additional procedures.