How to Audit Accounts ReceivableIf your company is subject to an annual audit, the auditors will review its accounts receivable in some detail. Accounts receivable is frequently the largest asset that a company has, so auditors tend to spend a considerable amount of time gaining assurance that the amount of the stated asset is reasonable. Here are some of the accounts receivable audit procedures that they may follow: Show
Accounts Receivable Audit RisksThe preceding list of audit procedures is designed to detect a variety of audit risks, which include the following:
What are the types of confirmation?The three types of confirmation forms are positive confirmation, blank confirmation forms, and negative confirmation.
Which of the following best describes the specific accounts payable that are selected for confirmation?Which best describes the specific accounts payable that are selected for confirmation? Accounts with large amount of activity. Most of the audit work on accounts payable is typically performed: After the balance sheet date.
When confirming accounts payable The approach is most likely to be one of?When confirming accounts payable, the approach is most likely to be one of: Selecting the accounts with the largest balances at year-end, plus a sample of other accounts.
Which of the following is not confirmed on the standard confirmation form?The Standard Form to Confirm Account Balances with Financial Institutions includes information on all of the following except: The principal amount paid on a direct liability.
|