Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Preparing and Analyzing an Aging Schedule Using Excel. For this exercise, your client, Bright Inc., has provided you with a listing of sales invoices of
Preparing and Analyzing an Aging Schedule Using Excel. For this exercise, your client, Bright Inc., has provided you with a listing of sales invoices of 8 customers (attached below). To test whether the client appears to have a receivables collectability problem, the auditor must complete a series of related steps: 1. Import the client's database of sales invoices to excel. 2. Perform an aging analysis report using Excel (The report should be broken up by intervals of 0-30 Days, 31-60 Days, 61-90 Days, and 90+ Days). Refer to the instructions included for guidance on how to create an aging analysis using Excel. Required: Complete the preceding steps and answer the following questions: a. What percentage of customers have accounts that are aged greater than 90 days? b. What percentage of customer balances are aged greater than 90 days? c. What effects would the findings in parts (a) and (b) have on the auditor's assessment of the risk of material misstatement? What accounts and assertions are most likely influenced by these findings? Note: Calculate the aging analysis using April 8, 2020 as the cut-off date. Customer A Number 1001 1010 1015 1021 Date 3/8/20 2/18/20 2/28/20 3/19/20 Customer Customer A Customer A Customer A Customer A Description Invoice 1001 Invoice 1010 Invoice 1015 Invoice 1021 $1,916.18 $529.18 $233.86 $393.79 Customer B Number 1002 1011 Date 1/4/20 2/6/20 Customer Customer B Customer B Description Invoice 1002 Invoice 1011 Amount $1,150.49 $1,348.38 Amount Customer C Number 1003 1013 1017 1019 Date 4/2/20 1/10/20 1/26/20 1/6/20 Customer Customer C Customer C Customer C Customer C Description Invoice 1003 Invoice 1013 Invoice 1017 Invoice 1019 $827.63 $1,630.23 $716.74 $619.32 Customer Date Amount Number 1012 number Pris/20 Customer Customer D customer o Invoice 1012 Description Invoice 1012 $1,163.41 Customer E Number 1014 Date 4/5/20 Customer Customer E Description Invoice 1014 Amount $231.38 Customer Number 10162 Date /16/20 Customer Customer F Description Invoice 1016 Amount $1,942.03 Customer G Number 1018 3 Date /24/20 Customer Customer G Description Invoice 1018 Amount $1,576.28 Customer H Number 1020 Amount Date Customer 10/11/19C ustomer H Description Invoice 1020 $1,014.52
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started