Question
The following are audit procedures in the sales and collection cycle. For each procedure, identify the type of evidence being used. Required: For each procedure,
The following are audit procedures in the sales and collection cycle. For each procedure, identify the type of evidence being used. Required: For each procedure, identify either the transaction-related audit objective(s) being met or the balance-related audit objective(s) being met by filling-in the blank Type of Evidence and audit risk?
1 Send a written enquiry to a sample of customers.
2 Examine a sample of subsequent payments to ensure that the customer balance has been paid.
3 Trace a sample of sales invoices to the A/R listing.
4 Take a sample of invoices from the sales journal and vouch to shipping documents
5 Scan the aged A/R trial balance to ensure that accounts great than 60 days are included in the allowance for doubtful accounts.
6 Compare last years total A/R to the current year and investigate unusual differences.
7 Foot the A/R subsidiary ledger and agree the total to the general ledger.
8 Examine a sample of sales invoice before and after year end to ensure that each invoice is recorded in the correct period
9 Examine the appropriateness of the presentation of A/R in the financial statements
10 Evaluate the adequacy of the footnotes for A/R in the financial statements
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