You are auditing the financial report of fresh star pty limited( fresh star) for the year ended 30 June 2019. You have concluded that your team cannot rely on the internal controls of fresh star and the existence of account receivable is at risk.

Questions:

A. Identify and explain very briefly two substantive procedures you could use to test the existence assertion for account receivable

B. How would you answer change, if that all it was established that the internal controls of fresh star operating efficiently

C. You just graduated from tua and joined p&g a big local audit firm as a junior auditor. During the audit planning of a client your audit senior told you that there are differences between revenue/sales cycle and expenditure cycle. He asked you with reference to assertions which assertion is the auditor primary concern in test of balances for liabilities