XYZ has engaged you to do a special audit of its Accounts Receivable.

The balance of Accounts receivable as at December 31, 2019 is $20,000,000.

Allowance for Uncollectible Accounts is $200,000 based on percentage of sales on account for the period. In addition, you found that Mr. Fat Nose, a prominent customer of XYZ has been declared bankrupt of $15,000.

Required:

Following the following steps in Audit Engagement to present your Audit Plan:

1. Engagement Planning and letter of engagement

2. Risk Assessment associated with the audit

3. Major procedure you will follow in investigating the three accounts mentioned in the case

4. Reporting of your audit findings.

Be brief to the point on each of the above steps.