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    Substantive Procedures For Receivables

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    Christian Perez
    The document outlines audit procedures for receivables, including confirming receivables balances with debtors, testing cutoff procedures to ensure receivables are recorded in the proper period, reviewing collectability and adequacy of allowance for doubtful accounts, and evaluating financial statement presentation and disclosure of receivables. Specific procedures include tracing selected accounts to subsidiary ledgers, sending confirmation letters, investigating exceptions, and verifying past due accounts that have not been subsequently paid.

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    © All Rights Reserved
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    Substantive Procedures For Receivables

    Uploaded by

    Christian Perez
    151 views3 pages
    The document outlines audit procedures for receivables, including confirming receivables balances with debtors, testing cutoff procedures to ensure receivables are recorded in the proper period, reviewing collectability and adequacy of allowance for doubtful accounts, and evaluating financial statement presentation and disclosure of receivables. Specific procedures include tracing selected accounts to subsidiary ledgers, sending confirmation letters, investigating exceptions, and verifying past due accounts that have not been subsequently paid.

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    SUBSTANTIVE PROCEDURES FOR RECEIVABLES.docx

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    The document outlines audit procedures for receivables, including confirming receivables balances with debtors, testing cutoff procedures to ensure receivables are recorded in the proper period, reviewing collectability and adequacy of allowance for doubtful accounts, and evaluating financial statement presentation and disclosure of receivables. Specific procedures include tracing selected accounts to subsidiary ledgers, sending confirmation letters, investigating exceptions, and verifying past due accounts that have not been subsequently paid.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    151 views3 pages

    Substantive Procedures For Receivables

    Uploaded by

    Christian Perez
    The document outlines audit procedures for receivables, including confirming receivables balances with debtors, testing cutoff procedures to ensure receivables are recorded in the proper period, reviewing collectability and adequacy of allowance for doubtful accounts, and evaluating financial statement presentation and disclosure of receivables. Specific procedures include tracing selected accounts to subsidiary ledgers, sending confirmation letters, investigating exceptions, and verifying past due accounts that have not been subsequently paid.

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    SUBSTANTIVE PROCEDURES FOR RECEIVABLES

    ASSERTIONS AUDIT OBJECTIVES AUDIT PROCEDURES SPECIFIC AUDIT


    PROCEDURES
    Existence or To determine that  Obtain schedule of  Selected accounts
    Occurrence receivables exists and aged loans and should be traced to
    represent bona fide receivables the subsidiary ledger.
    Rights and obligations owned to schedule and  Determine the
    Obligations the company as of reconcile to method, timing, and
    the statement of ledgers the number of
    position date.  Confirm confirmations to be
    receivables with requested.
    debtors.  Send confirmation
     Perform analytical letters to the debtors.
    procedures  Investigate any
    exceptions noted by
    customers to recorded
    balance
     Prepare summary of
    the results of the
    confirmation
     Perform the following
    alternative procedures
    for any unreturned
    confirmations: (1)
    Examine collections
    made subsequent to
    the confirmation date;
    (2) Trace invoice
    number and amounts
    collected to the
    individual customer’s
    account and to the
    record of cash receipts
    and to the bank
    deposit
    Completeness To determine that all  Test cutoff to
    transactions relative determine
    to receivables have whether
    been recorded in the receivables are
    proper accounting recorded in the
    period. proper accounting
    period
    Valuation and To determine that  Review  Verify past-due
    allocation receivables are collectability of accounts receivable
    recorded and receivables and listed in the aging
    presented at proper determine the schedule that have
    amounts in adequacy of not been paid
    accordance with allowance for subsequent to the SFP
    PAS/PFRS. doubtful accounts date
     Recalculate the  Determine credit
    interest income ratings for delinquent
    from the loans and unusually large
    receivable accounts
     Evaluate
    confirmations
    exceptions for
    indication of amounts
    in dispute or other
    clues as to possible
    uncollectible account
     Summarize in a
    working paper
    accounts considered
    to be doubtful
     Independent
    computation of the
    interest earned during
    the year on loans
    receivable
    Presentation and To determine that  Evaluate financial  Review the minutes of
    Disclosure the receivables are statement directors’ meeting
    properly presented presentation and and confirm with
    and classified in the banks any selling or
    statement of financial disclosure of assigning of accounts
    position receivables receivables
     Obtain written
    client
    representations
    regarding pledge,
    discount or
    assignment of
    receivables, and
    about receivables
    from officers,
    directors, affiliates
    or other related
    parties

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