Assume that you have been assigned to the audit of Keystone after audit planning has occurred. Review

Question:

Assume that you have been assigned to the audit of Keystone after audit planning has occurred. Review the planning information on pages 235–242 and the audit program for the and revenue (B-6 on pages 495–496). The manager on the engagement has given you the task of reviewing the monthly revenue report on page 498 (B-11).
a. Based on your review of the report, describe any unusual relationships that might indicate a risk of misstatement of revenues based on your knowledge of the company derived from a review of the information on pages 235–242.
b. Identify any procedures on the audit program for receivables and revenue that might address the risk(s) identified in (a).
c. Design two other procedures that would address the risk(s) identified in (a).

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...