Saree 13 Confirmations see polets) Your audit client has a December 31 year-end. The concert The internal controls are considered to be fairly strong for the recording, o C receivable balance is made up of 100 customers. The remaining SP of the be customers. In this situation explain each of the following What type of confirmations are you going to use for testing accounts receivable, what will be your sample size), and what will be the ake-up of your sample? E conclusion you did. As of what date will you confirm the customers' AR balances (i.e. date)? Explain why you came to the conclusion you did. * Apps University of Ureg. Google Translate Uther Bookmarks Screen 3 of 12 Confirmations Exercise (20 points) Your audit client has a December 31 year-end. The total accounts receivable balance for your client is $10,000,000 The internal controls are considered to be fairly strong for the recording of accounts receivable. 50% of the accounts receivable balance is made up of 100 customers. The remaining 50% of the balance is made up of several thousand customers. In this situation explain each of the following: What type of confirmations are you going to use for testing accounts receivable, how many will you send out (i.e., what will be your sample size), and what will be the make-up of your sample? Explain why you came to the conclusion you did. As of what date will you confirm the customers' AR balances (i.e., as of an interim date or as of the balance sheet date)? Explain why you came to the conclusion you did. If you do not receive replies to the confirmations you send out, what are you going to do to become comfortable with the customers' accounts receivable account balances? List all of the procedures you would perform. State what two primary assertions you are trying to satisfy by sending accounts receivable confirmations. Explain two reasons why confirmations are considered such a strong form of evidence. IATO 9 Saree 13 Confirmations see polets) Your audit client has a December 31 year-end. The concert The internal controls are considered to be fairly strong for the recording, o C receivable balance is made up of 100 customers. The remaining SP of the be customers. In this situation explain each of the following What type of confirmations are you going to use for testing accounts receivable, what will be your sample size), and what will be the ake-up of your sample? E conclusion you did. As of what date will you confirm the customers' AR balances (i.e. date)? Explain why you came to the conclusion you did. * Apps University of Ureg. Google Translate Uther Bookmarks Screen 3 of 12 Confirmations Exercise (20 points) Your audit client has a December 31 year-end. The total accounts receivable balance for your client is $10,000,000 The internal controls are considered to be fairly strong for the recording of accounts receivable. 50% of the accounts receivable balance is made up of 100 customers. The remaining 50% of the balance is made up of several thousand customers. In this situation explain each of the following: What type of confirmations are you going to use for testing accounts receivable, how many will you send out (i.e., what will be your sample size), and what will be the make-up of your sample? Explain why you came to the conclusion you did. As of what date will you confirm the customers' AR balances (i.e., as of an interim date or as of the balance sheet date)? Explain why you came to the conclusion you did. If you do not receive replies to the confirmations you send out, what are you going to do to become comfortable with the customers' accounts receivable account balances? List all of the procedures you would perform. State what two primary assertions you are trying to satisfy by sending accounts receivable confirmations. Explain two reasons why confirmations are considered such a strong form of evidence. IATO 9
