Assertion Audit Procedure a$.$ Ensure that the entity has legal title to accounts receivable $($rights and obligation$).$ b$.$ Determine that recorded accounts receivable include all amounts owed to the client $($completeness$).$ c$.$ Verify that all accounts receivable are recorded in the correct period $($cutoff$).$ d$.$ Ensure that the allowance for uncollectible accounts is properly stated $($accuracy$,$ valuation, and allocation$).$ e$.$ Confirm that recorded accounts receivable are made in the financial statements. f$.$ Ensure that all revenue related disclosures are made in the financial statements

Audit Procedure:

$1.$ Review of bank confirmations and loan agreements.

$2.$ Review of drafts of the financial statements.

$3.$ Select a sample of shipping documents, match them with related sales invoices,

and determine that they have been included in the sales journal and accounts

receivable subsidiary ledger.

$4.$ Select a sample of shipping documents for a few days before and after year$-$end.

$5.$ Confirmation of accounts receivable.

$6.$ Review of aging of accounts receivable with the credit manager.