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and international travel agents. Travel agents that wish to be able to make bookings on credit must complete an account

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and international travel agents. Travel agents that wish to be able to make bookings on credit must complete an account application form with at least three references. The auditor’s tests provide sufficient appropriate audit evidence that credit is granted only after rigorous credit checks. However, large travel agents often settle their accounts between 60 and 90 days (not the required 30 days). Given the A theme park business has a website that allows customers to make bookings online. The customers include the general public and local amount of business generated from these travel agents, the theme park business allows this practice to continue. The business has 720 travel agents as customers. Forty agents represent 65 per cent of trade debtors.


Required

(a) Discuss which debtors would be selected for further testing.

(b) When would the testing of debtors be carried out?

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a Debtors Selected for Further Testing The selection of debtors for further testing in the context of accounts receivable typically depends on risk assessment and materiality considerations In this ca…View the full answer


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Auditing A Practical Approach

Auditing A Practical Approach

ISBN: 9780730382645

4th Edition

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton

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Question Details
Chapter # 9- Execution of the audit — performing substantive procedures
Section: Review Questions
Problem: 28
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Question Posted: September 23, 2023 07:08:00
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