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s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a partial cadit program for substantive tests of accounts receivable.

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s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a partial cadit program for substantive tests of accounts receivable. Required: For audit procedures 1-4, identify the primary assertion being tested. thro ne in the materiality Part 2 Audit Planning and Basic Auditing Concepts EXHIBIT 3 - 2 A Partial Audit Program for Substantive Procedures Testing of Accounts Receivable Audit Procedures WP Ref Completed by 1. Obtain the December 31, 2013, aged accounts receivable trial balance and a. Foot the trial balance and agree total to accounts receivable control account b. Randomly select thirty accounts from the aged trial balance; agree the information per the aged trial balance to the original sales invoice and determine if the invoice was included in the appropriate aging category. 2. Confirm a sample of accounts receivable a. For all responses with exceptions, follow up on the cause of the error. b. For all nonresponses, examine subsequent cash receipts and/or supporting documents. C. Summarize the sampling test results. d. Summarize the confirmation results. 3. Test sales cutoff by identifying the last shipping advice for the year and examining five large sales for three days before and after year-end. 4. Test the reasonableness of the allowance for doubtful accounts by the following: a. Test the reasonableness using past percentages on bad debts. b. For any large account in the aged trial balance greater than 90 days old, test for subsequent cash receipts. 5. Prepare a memo summarizing the tests, results, and conclusions. 94 Part 2 Audit Planning and Basic Auditing Concepts LO 3- 9 3-30 Exhibit 3-2 contains a partial audit program for substantive tests of accounts receivable. Required: For audit procedures 1-4, identify the primary assertion being tested

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