The following misstatements are sometimes found in the revenue account balances:
1. Cash amounts received from collections of accounts receivable in the subsequent period are recorded as current period receipts.
2. The allowance for uncollectible accounts is inadequate due to the client's failure to reflect depressed economic conditions in the allowance.
3. Several accounts receivable are in dispute due to claims of defective merchandise.
4. The pledging of accounts receivable to the bank for a loan is not disclosed in the financial statements.
5. Goods shipped and included in the current period sales were returned in the subsequent period.
6. Long-term interest-bearing notes receivable from affiliated companies are included in accounts receivable.
7. The aged accounts receivable trial balance total does not equal the amount in the general ledger.
8. Several accounts receivable balances in the accounts receivable master file are not included in the aged trial balance report.
9. One accounts receivable customer included in the accounts receivable master file is included in the aged trial balance twice.
REQUIRED
a. For each misstatement, identify the balance-related or presentation and disclosure-related audit objective to which it pertains.
b. For each misstatement, list an internal control that should prevent it.
c. For each misstatement, list one test of details of balances audit procedure that the auditor can use to detect it.