Question: Sunny, senior auditor at KPMG has developed four assertions for the accounts Receivable of her client computer tech.

Accounts receivable assertions	Audit procedures
Accounts receivable represent all amounts owed to the client company at the balance sheet date.
The client company has a legal right to all accounts receivable at the balance sheet date.
accounts receivable are stated at net realisable value.
Accounts receivable are properly described and presented in the financial statements.

Sunny has performed the following four audit procedures

1. Perform sales cutoff tests to obtain assurance that sales transactions and corresponding entries for inventories and cost of good sold are recorded in the same and proper period

2. Review the aged trail balance for significant past due accounts.

3. Review loan agreements for indications of weather accounts receivable have been factored or pledged

4. Review the accounts receivable trail balance for amounts due from officers and employees

Required:

For each of the above four accounts receivable assertions, select Only one procedure for each audit assertion.

Subject name: Audit and accurance