The following are common tests of details of balances or analyticalprocedures for the audit of accounts receivable:1. Request 30 positive and 50 negative confirmations of accounts receivable.2. Select 10 customer accounts from the accounts receivable master file and trace tothe aged accounts receivable listing to verify name and amount.3. Select 10 customer accounts from the aged accounts receivable listing and trace tothe accounts receivable master file for name, amount, and aging categories.4. Obtain a list of aged accounts receivable, foot and cross-foot the list, and trace thetotal to the general ledger.5. Compute accounts receivable turnover for the current year and compare to theprior year.6. Perform alternate procedures on accounts not responding to second requests byexamining subsequent cash receipts documentation and shipping reports or salesinvoices.a. For each audit procedure, identify the balance-related audit objective or objectives itpartially or fully satisfies.b. In which order would the auditor perform the above procedures? Briefly justify youranswer.
The following are common tests of details of balances or analytical
procedures for the audit of
1. Request 30 positive and 50 negative confirmations of accounts receivable.
2. Select 10 customer accounts from the accounts receivable master file and trace to
the aged accounts receivable listing to verify name and amount.
3. Select 10 customer accounts from the aged accounts receivable listing and trace to
the accounts receivable master file for name, amount, and aging categories.
4. Obtain a list of aged accounts receivable, foot and cross-foot the list, and trace the
total to the general ledger.
5. Compute accounts receivable turnover for the current year and compare to the
prior year.
6. Perform alternate procedures on accounts not responding to second requests by
examining subsequent cash receipts documentation and shipping reports or sales
invoices.
a. For each
partially or fully satisfies.
b. In which order would the auditor perform the above procedures? Briefly justify your
answer.
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