The misstatements that you found during your audit of the year-end accounts receivable balance are listed after

Question:

The misstatements that you found during your audit of the year-end balance are listed after the following lettered items.
a. For each item, indicate the audit procedures that could evaluate the potential misstatement in the and the management assertion addressed by the audit procedure.
b. How would you determine whether the misstatements were caused by errors on the part of the audit client or fraud? Does it matter?
Misstatements
(1) Sales totaling $1,254,721 were shipped on January 3, 2012, and recorded on December 31, 2011.
(2) Balances in individual customer accounts do not agree with the support-ing documents (invoices, shipping documents, cash receipts).
(3) Some sales transactions were not recorded.
(4) A customer account in the > 0–30 days category in the aged trial balance is actually more than 120 days old.
(5) Actual written off in 2011 were higher than the
December 31, 2010, allowance for uncollectible accounts balance.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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...