Accounts Receivable Audit Program

Only available on StudyMode
  • Download(s) : 405
  • Published : October 15, 2012
Open Document
Text Preview
AP-3:    ⇒Audit Program for Accounts Receivable
Company          Balance Sheet Date       
|  | |          The company has the following general ledger accounts that are classified in the accounts, notes, or other receivables captions of the | |balance sheet: | |  |General |  |Description or | | |Ledger | |Brief Purpose | | |Number | |of the Account | |  |FINANCIAL STATEMENT ASSERTIONS |  |  | | |E/O     Existence or occurrence.               V/A          Valuation or allocation. | | | | |C          Completeness.                              P/D          Presentation and disclosure. | | | | |R/O     Rights and obligations. | | | |  |AUDIT OBJECTIVES |  |  | | |     A.     Accounts receivable are authentic obligations owed to the company at the balance | | | | |sheet date (assertions E/O, R/O, and V/A). | | | |  |     B.     Accounts receivable include all amounts owed to the company at the balance sheet date|  |  | | |(assertion C). | | | |  |     C.     The allowance for doubtful accounts is adequate but not excessive. If the direct |  |  | | |write-off method is used, all significant doubtful accounts have been written off, and the bad | | | | |debt exposure in the remaining accounts is insignificant (assertions V/A and P/D). | | | |  |     D.     Pledged, discounted, or assigned accounts receivable are properly disclosed. Related |  |  | | |party receivables are properly disclosed (assertions  R/O and P/D). | | | |  |     E.     Accounts receivable are appropriately classified in the balance sheet, and required |  |  | | |disclosures are made (assertion P/D). | | | |  |IDENTIFICATION CODES |  |  | | |The letters preceding each of the above audit objectives, i.e., A, B, etc., serve as | | | | |identification codes. These codes are presented in the left column labeled “Audit Objectives” | | | | |when a procedure accomplishes an objective. If the alpha code appears in a bracket, e.g.,...
tracking img