Donna Thomas is the bookkeeper for Farley Fabrics (a retail cloth distributor), and her duties consist of receiving the checks from the customers and recording the payments in the A/R subsidiary ledger. On January 8th, , Donna hears the president talks about a one-time purchase of a unique fabric by Collin's Casuals. She also hears that Collin's going to make $6,400 purchase. The next day, Collin's Casuals submits its order for that $6,400 for fabric. With all of this in mind, Donna embezzles $6,400 of that day's payments received from Mama Moos and Jabba's Jammies for the fabric which were sent to them i1996 (both of whom are regular customers of Farley). Donna makes no entries in the accounts. Five days later, Collin's Casual pays its bill, and no more business with Farley and, at the end of the year, Donna writes off Collin's receivable as uncollectible.

Required: Suppose that you are the appointed auditor of Farley Fabrics, Inc. Please prepare the completed audit program (audit procedures and techniques) for the accounts receivable in order to meet the audit objectives of accounts receivable.