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P16-26 (book/static) The following misstatements are sometimes found in the sales and collection cycle's account balances: (Click the icon to view the misstatements.) Requirements a. For each misstatement, identify the balance-related audit objective to which it pertains. b. For each misstatement, list an internal control that should prevent it c. For each misstatement, list one test of details of balances audit procedure that the auditor can use to detect it. 1. Several cash receipts were posted to the incorrect customer accounts. 2. A shipment made in the subsequent period is recorded as a current period sale. 3. The allowance for uncollectible accounts is inadequate because of the client's failure to reflect depressed economic conditions in the allowance. 4. Several accounts receivable are in dispute as a result of claims of defective merchandise. 5. The pledging of accounts receivable to the bank for a loan is not disclosed in the financial statements. 6. Goods were returned for credit on the last day of the fiscal year but the sales return was not recorded until the following fiscal year Several accounts receivable in the accounts receivable master file are not included in the aged trial balance. One account receivable in the accounts receivable master file is included on the aged trial balance twice Long-term interest-bearing notes receivable from affliated companies are included in acccou 7. ts receivable. 9. Choose from any drop-down list and then click Check Answer Clear All part