apollo shoes case study 4 Essay

2724 Words Oct 31st, 2013 11 Pages
Audit plan – Accounts Receivable and Notes Receivable
Audit Procedures
Audit
Objectives
W/P Ref.
Initials
Comments
Accounts Receivable
1. Obtain an aged trial balance of individual customer accounts. Recalculate the total and trace to the general ledger control account.
2. Review the aging for large and unusual items.
3. Send confirmations to all accounts over $X. Select a random sample of all remaining accounts for confirmation.
a.i.1.a.i.1.a. Investigate exceptions reported by customers.
a.i.1.a.i.1.b. Perform alternative procedures on accounts that do not respond to positive confirmation requests.
a.i.1.a.i.1.b.i. Vouch cash receipts after the confirmation date for subsequent payment.
a.i.1.a.i.1.b.ii. Vouch sales
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Since we have confirmed the cash balance, the beginning and ending A/R balance and the additions to A/R, we are reasonably assured that these reductions are free from material error.

Other Receivables
For the Year ended 12/31/2011

Note: In review of the Board of Director Minutes (GA-3.2), it was noted that the other receivables was an advance to Mr. Lancaster’s secretary. This was reclassed to an employee receivable (AJE# 3). It was also noted that the note carried a 1% interest rate. For the six month period this would be $5,000. Due to the nature of the note and the concern of whether Mr. Lancaster’s secretary will ultimately pay this back, no accrual is made here. It will be noted in the footnotes, however.

C-2
Apollo Shoes, Inc. Accounts Receivable Aged Trial Balance

Prepared by

For Year Ended 12/31/2011

Reviewed by

2011

Conf
Date
Date
Current
Past Due

2012 Payments

Net Sales
Total Balance
Type
Mailed
Rcvd
90 Days
Received #

Pay More Shoes
$586,779.54
$526,004.85
N

$526,004.85

C-4 $526,004.85

Nuke Me
$1,847,819.03
$35,028.59
N

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