PROBLEM $6$:

You are reviewing the audit workpapers associated with your firm$$s audit of the financial statements of Foxtrot Corporation $($the Company$)$ as of and for the year ended December $31,2024.$ Staffing is really tight on this engagement and inexperienced staff accountants performed all of the audit work associated with the Company$$s accounts receivable and revenues, which are material to the financial statements taken as a whole. Selected documentation for this part of your firm$$s audit follows. $$ Notes $$ A decision was made not to confirm accounts receivable. They were confirmed last year, and response was good. We covered it all in subsequent cash collects. Think balance look good. $$ A decision was also made not to perform any test of revenue. We nailed down the receivable balances with good with subsequent collections. Customer would not pay if we did not properly record revenue under GAAP. $$ Trial Balance This amount does not agree to the trial balance by $$2,000$ but that number is less that overall financial statement materiality, pass further work. $1.$ Observed a cash receipt on the cash records of $$20,000$ on $1\mathrm{.}15\mathrm{.}25.2.$ Per conversation with the accounts receivable clerk this one is okay and will be collected, customer is going through tough time. $3.$ No collection on this one yet. $4.$ No collection on this one yet either, per accounts receivable clerk this customer is the son of the owner of Foxtrot Corporation. $5.$ Looked at the original invoice, could not find anything else. Accounts receivable clerk suggested this approach. $$ Required $$ By reference to AU$-$C Section $505,$ AU$-$C Section $230,$ AU$-$C Section $330,$ and other resources, including the textbook, prepare a list of concerns that you may have about the accounts receivable and revenue audit documentation. $$ What I am looking for in Problem $6$ is some thoughts on follow up questions or suggestions that you might have for the staff after your review of the accounts receivable audit documentation.$$