The purpose of testing the quality of debits and credits is to find errors recorded in the amounts. True False
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- Suppose we collected cash from a charge customer and the debit was to Cash and the credit to Sales. How and when would this error be discovered?Why are the confirmation of payables is not a required audit procedure as it is with receivables?discuss the process of auditing the following:• Revenue• Receivables• Expected Credit Loss (ECL)
- If you review your credit report and find an error, and you’re able to prove it is, indeed, an error, how long does the credit bureau have to remove the error?How would you find errors in recording transactions and what is the process to correct errors?The matching principle states that debits should be matched with credits.
- Explain the relationship between the matching principle andthe need to estimate uncollectible accounts receivable.fast discuss the process of auditing the following:• Revenue• Receivables• Expected Credit Loss (ECL)What is the process of confirming accounts receivable balances. Why is it important for auditors to understand revenue recognition rules?
- Generally, test of details of transactions is used when account balances are affected by large volumes of relatively immaterial transactions. TRUE OR FALSE? WHY?What is a suspense account? Is it necessary that is suspense account will balance off after rectification of the errors detected by the accountant? If not, then what happens to the balance still remaining in suspense account?How would you find errors in recording transactions and what is the process to correct errors? Provide an example
