The following are specific balance-related audit objectives applied to the audit of accounts receivable (a. through h.) and management assertions about account balances (1 through 4). The list referred to in the specific balance-related audit objectives is the list of the accounts receivable from each customer at the balance sheet date. Specific Balance-Related Audit Objective a . There are no unrecorded receivables. b . Receivables have not been sold or discounted. c . Uncollectible accounts have been provided for. d . Receivables that have become uncollectible have been written off. e . All accounts on the list are expected to be collected within 1 year. f . The total of the amounts on the accounts receivable listing agrees with the general ledger balance for accounts receivable. g . All accounts on the list arose from the normal course of business and are not due from related parties. h . Sales cutoff at year-end is proper. ----------------- Management Assertion about Account Balances . 1 . Existence 2 . Completeness 3. Valuation and allocation 4. Rights and obligations Required for each specific balance-related audit objective, identify the appropriate management Assertion Required Connecting Specific Balance-Related Audit Objective with Management Assertion about Account Balances ?
The following are specific balance-related audit objectives applied to the audit of accounts receivable (a. through h.) and management assertions about account balances (1 through 4). The list referred to in the specific balance-related audit objectives is the list of the accounts receivable from each customer at the balance sheet date. Specific Balance-Related Audit Objective a . There are no unrecorded receivables. b . Receivables have not been sold or discounted. c . Uncollectible accounts have been provided for. d . Receivables that have become uncollectible have been written off. e . All accounts on the list are expected to be collected within 1 year. f . The total of the amounts on the accounts receivable listing agrees with the general ledger balance for accounts receivable. g . All accounts on the list arose from the normal course of business and are not due from related parties. h . Sales cutoff at year-end is proper. ----------------- Management Assertion about Account Balances . 1 . Existence 2 . Completeness 3. Valuation and allocation 4. Rights and obligations Required for each specific balance-related audit objective, identify the appropriate management Assertion Required Connecting Specific Balance-Related Audit Objective with Management Assertion about Account Balances ?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 54P
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The following are specific balance-related audit objectives applied to the audit of accounts receivable (a. through h.) and management assertions about account balances (1 through 4). The list referred to in the specific balance-related audit objectives is the list of the accounts receivable from each customer at the balance sheet date.
Specific Balance-Related Audit Objective
a . There are no unrecorded receivables.
b . Receivables have not been sold or discounted.
c . Uncollectible accounts have been provided for.
d . Receivables that have become uncollectible have been written off.
e . All accounts on the list are expected to be collected within 1 year.
f . The total of the amounts on the accounts receivable listing agrees with the general
ledger balance for accounts receivable.
g . All accounts on the list arose from the normal course of business and are not due
from related parties.
h . Sales cutoff at year-end is proper.
-----------------
Management Assertion about Account Balances .
1 . Existence
2 . Completeness
3. Valuation and allocation
4. Rights and obligations
Required for each specific balance-related audit objective, identify the appropriate management
Assertion
Required Connecting
Specific Balance-Related Audit Objective with Management Assertion about Account Balances ?
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