Taylor Wholesalers distributes golf equipment to about 100 retail sporting goods stores. At June (30,19 times 7),
Question:
Taylor Wholesalers distributes golf equipment to about 100 retail sporting goods stores. At June \(30,19 \times 7\), the end of the company's fiscal year, the distribution of the accounts receivable balances was as follows:
No accounts receivable are past due. Internal control affecting accounts receivable is considered to be effective. You have been furnished with the following audit program for substantive tests of accounts receivable.
1. Foot the detailed accounts receivable ledger and compare the total with the balance in the accounts receivable control account.
2. Using customer numbers, randomly select 50 accounts for positive confirmation. Send second requests and perform alternative procedures where necessary.
3. Obtain a detailed aged trial balance and test the schedule to the detailed accounts receivable ledger. Select every third account and discuss its collectibility with the credit manager.
4. Examine all subsequent collections of accounts receivable during the month of July \(19 \times 7\).
What changes to the program, if any, would you suggest?
Step by Step Answer:
Auditing An Assertions Approach
ISBN: 9780471134213
7th Edition
Authors: G. William Glezen, Donald H. Taylor