Apollo Shoes, Inc. E-0 AUDIT PLAN—Preliminary Analytical Procedures FYE 12/31/2020 Audit Procedures W/P Ref. Mgmt Initials Comments Assertions Agree current year amounts on Accounts Receivable lead schedule to trial balance. A-2,E-1 Acc WH Agreed without exception. Agree prior year amounts to prior year audited financial statements. E-2 Acc TC Agreed without exception. Foot Accounts Receivable lead schedule. E-1 Acc WH Agreed without exception. Obtain an aged trial balance of individual customer accounts. Recalculate the total and trace to the Trial Balance. E-2 Review the aging for large and unusual items. E-2 E, Acc, Net Val, Cutoff, Rts, TC No unusual items noted. Send confirmations to all accounts over $1,000,000 plus some randomly chosen accounts. E-3 E, Acc TC Confirmations (representing approximately 92% total AR coverage) mailed on 01/14, Second request on 01/30. Investigate exceptions reported by customers. Resolutions to any exceptions should be noted on the confirmation and any related proposed adjustments added to the lead schedule. Perform alternative procedures on accounts that do not respond to positive confirmation requests. Vouch cash receipts after the confirmation date for subsequent payment. Vouch sales invoices and shipping documents if no cash receipt is available. Evaluate the adequacy of the allowance for doubtful accounts. Vouch a sample of current amounts in the aged trial balance to sales invoices to determine whether amounts aged current should be aged past due. E-2 E, Cut, Net Val, TC No exceptions noted. Calculate and document an allowance estimate using prior collectability history, any changing economic conditions, and specific accounts determined to be uncollectible that have not been previously addressed. Compare your estimate to the Allowance balance at year end. Note any proposed adjustment and add to the lead schedule.

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Apollo Shoes Inc is an audit case designed to introduce you to the entire audit process from planning the engagement to drafting the final report You are asked to assume the role of a veteran of twoto... View the full answer