What alternative auditing procedures may be undertaken in connection with the confirmation of accounts receivable where customers having substantial balances fail to reply after second request forms have been mailed directly to them?
Answer to relevant QuestionsA CPA firm wishes to test the client’s sales cutoff at June 30, 20X0. Describe the steps that the auditors should include in this test.Listed below are audit situations that may affect the audit of receivables and revenue.a. The audit of a machinery manufacturing company that engages in bill and hold transactions.b. The audit of a software company that ...For each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following:Audit Procedures:(1) Analytical procedure(2) Confirmation(3) ...The July 31, 20X0, general ledger trial balance of Aerospace Contractors, Inc., reflects the following accounts associated with receivables. Balances of the accounts are after all adjusting journal entries proposed by the ...In selecting accounts receivable for confirmation, the auditors discover that the client company’s records show the addresses of many individual customers to be post office boxes. What should be the auditors’ reaction to ...
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