You are using computer audit soft-ware to prepare accounts receivable confirmations during the annual audit of the

Question:

You are using computer audit soft-ware to prepare accounts receivable confirmations during the annual audit of the Eastern Sunrise Services Club. The company has the following data files:

Master file— debtor credit record.

Master file— debtor name and address.

Master file— account detail:

Ledger number.

Sales code.

Customer account number.

Date of last billing.

Balance (gross).

Discount available to customer (memo account only).

Date of last purchase.

The discount field represents the amount of discount available to the customer if the customer pays within 30 days of the invoicing date. The discount field is cleared for expired amounts during the daily updating. You have determined that this is properly executed.

Required:

From the data files shown, list the information that you would include on the confirmation requests. Identify the file from which the information can be obtained.

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...