To give you an opportunity to apply the theory that has been discussed in class, this weeks class will be devoted to discussing the actual applications of audit procedures to specific account assertions and balances in the financial statements.

(Principles of Auditing and Other Assurance Services. (20th ed.) Chapter 11 Accounts Receivable.

The assignment consists of several parts:

1) Use the IDEA software to evaluate your chosen account type. The step-by-step instructions are in the IDEA Workbook. Section 2 covers Accounts Receivable.

2) You are to prepare a 2-3 page paper discussing the risk associated with a SPECIFIC assertion or account balance related to a given process, the audit procedures you used to test that assertion or account balance, what evidence you used and if you feel it was adequate in light of that test, and how you concluded if the evidence was adequate. Use a the IDEA example to illustrate the points being made.