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During class we discussed a variety of audit tests including tests of details of balances, tests of control, tests of transactions, and substantive analytical procedures.
During class we discussed a variety of audit tests including tests of details of balances, tests of control, tests of transactions, and substantive analytical procedures. For each procedure listed below, identify the type of audit test it best represents. Send confirmations for accounts receivable endin [Select] balance Compare dates and quantities on shipping documents with the sales journal throughout the year test of balances test of controls test of transactions analytical procedures Perform alternative procedures for non-responses [Select] on positive confirmations sent Inquire as to any related party notes that might be [Select] included with accounts receivable Review sales return receipts for warehouse manager's signature authorization that items were [Select] in good condition and could be returned to inventory Review 3 years of historical accounts receivable [Select] aging reports for trends and comparability Foot the aged trial balance and compare the total [Select] with the general ledger Examine a sample of customer orders and see [Select] whether each has a credit authorization Compute the ratio of allowance for uncollectible accounts divided by accounts receivable and [Select] compare to previous year results Observe whether the controller makes an independent comparison of the total in the [Select] general ledger with the trial balance of accounts receivable
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