Assume an account receivable confirmation is returned with a note to the auditor describing a difference between your client's records and the customer's records. Clearly describe below two potential non-misstatement timing differences that could cause a discrepancy between a client's receivable records and his/her customer's records. The timing differences you describe should be such that after investigation you would determine that your client's receivable balance is not misstated due to these differences.
What will be an ideal response?
1. Entity shipped to customer before year-end but customer received after year-end.
2. Customer sent payment to entity before year-end but entity received after year-end.
You might also like to view...
The fair use doctrine for copyrights allows certain limited unauthorized use of copyrighted materials
Indicate whether the statement is true or false
The ________ Amendment to the U.S. Constitution protects individuals' right to trial by jury
A) First B) Fourth C) Fifth D) Fourteenth
___________ are fundamental to your life, and values, at the highest level.
a. Values b. Core values c. Leadership behaviors d. Strategic goals
Define and discuss horizontal and vertical privity. Explain the effect of the Code and the courts on the concept of privity of contract