Professional Documents
Culture Documents
Collection Cycle:
Accounts Receivable
16 - 1
Learning Objectives
1.
2.
3.
4.
5.
16 - 2
Detail tie-in
Existence
Accuracy
Classification
Realizable
value
Completeness
Cutoff
Rights
16 - 3
16 - 4
16 - 5
16 - 6
16 - 7
Items to
select
Timing
16 - 8
16 - 9
confirmation
Blank confirmation form
Invoice confirmation
Negative
confirmation
16 - 10
Analysis of Differences
Payment has already been made
Goods have not been received
The goods have been returned
Clerical errors and disputed accounts
16 - 11
Drawing Conclusions
Reevaluate internal control.
Evaluate the qualitative nature of
misstatements.
Determine whether sufficient evidence
was obtained.
16 - 12
Tolerable misstatement
Acceptable audit risk
Inherent risk
Control risk
Substantive tests of transactions results
Analytical procedures
Planned detection risk and planned audit
evidence
16 - 13
16 - 14