Assume that an organization asserts that it has $35 million in net account receivables. Using the assertions listed in Exhibit 5.5, describe specifically what management is asserting with respect to net accounts receivable.
Answer to relevant QuestionsWhat is an audit program? What information should an auditor gather before developing an audit program?Refer to the Auditing in Practice feature, “Controls to Address Fraud Risk.” When assessing control design effectiveness, what types of controls would an auditor expect a client to have in place to address fraud risk? ...When the auditor determines that controls are not operating effectively, the auditor needs to consider the kind of misstatements that could occur, how they might occur, and how the auditor would adjust substantive audit ...What substantive procedures could an auditor use to determine that all purchases debited to a fixed asset account in the current year are properly valued?Identify the PCAOB AS that relates to audit documentation. Review that AS and describe the characteristics of good audit documentation that are noted in that standard.
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