apollo shoes case study 4 Essay

2724 Words11 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…show more content…
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

More about apollo shoes case study 4 Essay

Open Document