Substantive procedures for sales and receivables assertions The auditor for Knowles, Inc is attempting to determine whether the recorded sales and accounts receivable are supported by valid transactions. Identify the assertions being tested and develop the substantive procedures to be used to satisfy the auditor's objectives
The auditor is testing the existence and occurrence assertion as the concern is from recorded amounts in the direction of source documents and transactions. The auditor would most likely perform the following substantive procedures:
? confirm balances or invoices with customers based on a sample that is representative of the receivables (and possibly sales) population.
? send second and possibly third confirmation requests.
? examine subsequent collections on account for receivables.
? scan sales journal for duplicate entries.
? trace recorded amounts of sales and receivables to customer sales invoices, orders and bills of lading
You might also like to view...
An example of a special court in the federal judicial system is the:
a. U.S. Court of Federal Claims. b. Federal District Court. c. U.S. Supreme Court. d. U.S. Court of Appeals.
The large number of possible key values created by the algorithm to use when transforming the message best describes
A) determinate. B) encryption code. C) encryption lock. D) key space.
A strong security program begins by______
a. assessing the threats to an organization's computers and network b. authorizing a large budget to pay for the necessary hardware and software c. hiring a chief security officer d. monitoring the network for potential intrusions
What is the amount of interest expense that can be deducted as an itemized deduction?
Teri pays the following interest expenses during the year:
A) $10,500
B) $10,900
C) $14,300
D) $14,700