Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned

You are conducting the audit of Superior Company as of December 31, 2014. The following accounts receivable confirmations were sent out by you and returned to you from Superiors customers. Based on the customers comments indicate what action you would take.

January 15, 2015

Baker Company

18 Lakeview Drive

Rocky Hill, Ct. 06262

Dear Mrs. Baker,

Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2014 which is shown on our records as $25,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.

Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.

James Blake

James Blake

Controller

Superior Company

To Miller, CPA:

The amount shown above is correct as of December 31, 2014, except as follows:

Sure we ordered $25,000 of merchandise on October 10, 2014, but Superior was out of stock until recently. They back ordered goods and we finally received them on January 4, 2015.

Nancy Baker

January 15, 2015

Clark Retailing

48 Harvest Street

Hartford, Ct. 06762

Dear Mrs. Smith

Our auditor, Miller, CPA, is currently auditing our financial statements. To facilitate that audit, please confirm the balance due us as of December 31, 2014 which is shown on our records as $75,000. Indicate in the space below whether this is in agreement with your records. If there are exceptions please provide information please provide any information that will assist our auditors in reconciling the difference.

Please mail your reply directly to Miller, CPA. A stamped, self addressed envelope is enclosed for your convenience.

James Blake

James Blake

Controller

Superior Company

To Miller, CPA:

The amount shown above is correct as of December 31, 2014, except as follows:

Our records show that a check for $75,000 was mailed on December 27, 2014.

Mary Smith

Controller

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

Step: 3

blur-text-image

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

3rd Edition

0139488944, 978-0139488948

More Books

Students also viewed these Accounting questions

Question

Demonstrate, using notation, that E(x + k) = E(x) + k.

Answered: 1 week ago

Question

Create a Fishbone diagram with the problem being coal "mine safety

Answered: 1 week ago

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago

Question

7. Explain how an employee could reduce stress at work.

Answered: 1 week ago