The following are the nine balance-related audit objectives. (Click the icon to view the balance-related audit objectives.) Below are seven tests of details of balances for accounts receivable, and six tests of controls or substantive tests of transactions for the sales and collection cycle. Read the Requirements More info a. Identify which procedures are tests of details of balances, which are tests of controls, and which are substantive tests of transactions. b. For each balance-related audit objective, identify which test of details of balances and test of controls or substantive test of transactions partially satisfy the balance-related objective. Audit procedures Type of test Confirm accounts receivable ending balances and sales terms, such as right of return and consignment 1. arrangements. Review sales returns after the balance sheet date to determine whether any are applicable to the current 2. year. 3. Compare dates on shipping documents with the sales journal throughout the year. 4. Perform alternative procedures for nonresponses to confirmations. 5. Examine sales transactions for related-party or employee sales recorded as regular sales. Examine sales invoices for consignment sales and other shipments for which control has not been 6. transferred. 7. Trace a sample of accounts from the accounts receivable master file to the aged trial balance. 8. Trace recorded sales transactions to shipping documents to determine whether a document exists. Trace the balance of accounts receivable from related parties to proper disclosure in the footnotes to 9. the financial statements. 10. Trace a sample of shipping documents to related sales invoice entries in the sales journal. 11. Compare amounts and dates on the aged trial balance with the accounts receivable master file. Trace from the sales journal to the accounts receivable master file to make sure the information is the 12. same. 13. Inquire of management whether there are notes from related parties included with trade receivables