As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample of the company customers. Review Alejandro's comments on each of the following five confirmations and determine the best conclusion and/or follow-up procedures for each item. Assume that each confirmation has been signed with the appropriate signature unless otherwise noted.

February 1, 2018 West Coast Ski Center, Inc. 163 Tide Avenue Monterey, California 93940 Re: Balance at December 31, 2017 - $414,000 Dear Sirs: As of December 31, 2017, our records indicate your balance with our company as the amount listed above. Please complete and sign the bottom portion of this letter and return the entire letter to our auditors, JS LLP, PO Box 100, Orlando, Florida 32806. A stamped, self-addressed envelope is enclosed for your convenience. Sincerely, Aquatic Jet Products, Inc.

If incorrect, please provide information that could help to reconcile your account.

Response: We made a payment of $94,000 on December 12, 2017.

Signature..............Title

..............................Date

Alejandro's note to file:

Per discussion with the controller, the company received the payment of $94,000 on December 15, 2017, and posted it to ?Other Income.?

Transcribed Image Text:

The above balance is X Correct Incorrect (show amount) $320,000 The above balance is X Correct Incorrect (show amount) $320,000

Answer rating: 100% (QA)

Account receivable is the amount that is due from all the persons to whom a person has sold go... View the full answer