Oceanview Marine Company 213 Audit Program Accounts Receivable December 31, 2018 ..__mm -_ MODIFICATIONS T0 AUDIT PROGRAM (9 Based on the results of previous audit procedures, No modications of audit complete the Planned Tests of Balances Matrix for program deemed necessary. accounts receivables and, if necessary, make appropriate modifications to this audit program. TESTS OF BALANCES 2. Obtain an aged listing of accounts receivable as of 21? BC No exceptions. year-end and: to (a) foot the listing and crossfoot totals. 21'9 (b) trace total of aged receivables to the general ledger. (c) trace entries for individual customers from the aging analysis to the individual accotuits in the accounts receivable subsidiary records. Perform confirmations of accounts receivable. A Verify by conrmation or alternative means all E accounts selected for confirmation. (a) determine sample size for confirmation testing. (b) select individual accounts for confirmation testing. (c) evaluate differences between receivable bal- ances and confirmation responses (or alterna- tive procedures). Determine whether differ- ences are valid timing differences or misstate- ments. (d) generalize misstatements to the population of accounts receivable and evaluate acceptability of the population. 4. Review allowance for bad debts and: 21-15 BC Adjusnnents required as A mid noted on W43 212. 2116 Co Rv * Audit Objectives: (a) discuss with management whether the allowance amount is adequate. Accuracy Classification Completeness Cutoff Detail tie-in Existence Presentation and disclosure Realizable value Rights and obligations (b) review payments received after year end. (c) prepare an analysis of the allowance account and compare to the general ledger