As the manager of the external audit team, you realize that the embedded audit module only writes material invoices to the audit tile for the accounts receivable confirmation process You are immediately concerned that the accounts receivable account may be substantially overstated this year and for...

The concern is that many immaterial invoices may add up to a material a ...

As the manager of the external audit team, you realize that the embedded audit module only writes

Question:

As the manager of the external audit team, you realize that the embedded audit module only writes material invoices to the audit tile for the confirmation process. You are immediately concerned that the account may be substantially overstated this year and for the prior years in which this EAM was used.

Required
Explain why you are concerned because all “material” invoices are candidates for confirmation by the customer. Outline a plan for determining if the are overstated.

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...