Imagine that you were auditing accounts receivable balances to confirm sales and found significant discrepancies between the recorded account balances and returned confirmations from customers. Recommend an alternative approach to confirming sales revenue. Provide a rationale for your recommendation
Accounts receivable is frequently the most significant asset a company has. Hence, auditors tend to spend considerable time gaining assurance that the amount of the stated asset is reasonable. Here are a few of the accounts receivable audit procedures that can be followed: Trace receivable report to the general ledger. The auditors will ask for a period-end account receivable aging report, from which they trace the total to the amount in the accounts receivable account in the general ledger. (If these totals do not match, you may have a journal entry somewhere in the general ledger account that should not be there). Calculate the receivable report total. The auditors will add the invoices on the accounts receivable aging report to verify that the total they traced to the general ledger is correct.
The preceding list of audit procedures is designed to detect a variety of audit risks, such as: that receivables do not exist, incorrect receivable balances, and dummy accounts that reflect bad debt like sales transactions not keyed in the right period.
We are a professional custom writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework.
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill our Order Form. Filling the order form correctly will assist our team in referencing, specifications and future communication.
2. Fill in your paper’s requirements in the "PAPER INFORMATION" section and click “PRICE CALCULATION” at the bottom to calculate your order price.
3. Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
Need this assignment or any other paper?
Click here and claim 25% off
Discount code SAVE25