Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The tollowing are the eight balance-related audit ocjectives, sic tests of detals of balances for accounts recelvable, and seven tests of controls or substantve tests

image text in transcribed
image text in transcribed
image text in transcribed
The tollowing are the eight balance-related audit ocjectives, sic tests of detals of balances for accounts recelvable, and seven tests of controls or substantve tests of transacbons for Requirements the sales and colecton cycle a. Identfy which proce b. For each balancere (Click tha icon to view the eight balance-relaed audt objectives) 0(Click the icon to view the so tests of detals of balances for accounts receivable, and seven tests of controls or substantve tests of transactons objectve Requirement a. Idenbfy which procedures are tests of detals of balances, which are tests ot controls, and which are substantive tests of transactions. (Abtreviaton used S T ofT Substantive tests of tansa Audit procedures 1 Confim accounts receivable ending balances and sales terms, such as right of return and consignment Type of test arrangements Review sales returns an fthe balace smet date to determine whether any are applicable to the current year 2 [ 3 Compare dates on shpping documents with the sales journal throughout the year 4. Perform atermative procedures for norresponses to confirmations Examine sales transactions for related-party or employee sales recorded as regular sales 6. Examne dupicale sales invoices for consignment sales and oher shipments for which bte has not passed 7. Trace a sameie of accounts tom the accortsreceivatie master tietote d tal balance. Ttace recorded salestransactions to sto ng documents to deborine whether adocument exists 0. Examine duplicate sales involces for initials that indcale internal verification of extensions and footings 10 Trace asampie of sipping documents to related sales inveice entries in ne saes jouna 11. Compare amounts and dates on the aged tial balance with the accounts recevatie master tie 2 Trace from the sales jounal to the axcounts receivable master nie to make sure the information is the same 13 Inquire of management whether there are notes from related parties included with trade recevaties The tollowing are the eight balance-related audit ocjectives, sic tests of detals of balances for accounts recelvable, and seven tests of controls or substantve tests of transacbons for Requirements the sales and colecton cycle a. Identfy which proce b. For each balancere (Click tha icon to view the eight balance-relaed audt objectives) 0(Click the icon to view the so tests of detals of balances for accounts receivable, and seven tests of controls or substantve tests of transactons objectve Requirement a. Idenbfy which procedures are tests of detals of balances, which are tests ot controls, and which are substantive tests of transactions. (Abtreviaton used S T ofT Substantive tests of tansa Audit procedures 1 Confim accounts receivable ending balances and sales terms, such as right of return and consignment Type of test arrangements Review sales returns an fthe balace smet date to determine whether any are applicable to the current year 2 [ 3 Compare dates on shpping documents with the sales journal throughout the year 4. Perform atermative procedures for norresponses to confirmations Examine sales transactions for related-party or employee sales recorded as regular sales 6. Examne dupicale sales invoices for consignment sales and oher shipments for which bte has not passed 7. Trace a sameie of accounts tom the accortsreceivatie master tietote d tal balance. Ttace recorded salestransactions to sto ng documents to deborine whether adocument exists 0. Examine duplicate sales involces for initials that indcale internal verification of extensions and footings 10 Trace asampie of sipping documents to related sales inveice entries in ne saes jouna 11. Compare amounts and dates on the aged tial balance with the accounts recevatie master tie 2 Trace from the sales jounal to the axcounts receivable master nie to make sure the information is the same 13 Inquire of management whether there are notes from related parties included with trade recevaties

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bookkeeping And Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1654626090, 978-1654626099

More Books

Students also viewed these Accounting questions