Subject: accounting Instruction: answer the required items and explain each procedure Colleen Hi-Fi Ben Specialties Cely Electronics

Subject: accounting

 Instruction: answer the required items and explain each procedure

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Colleen Hi-Fi Ben Specialties Cely Electronics Will Pipeline Leng Tom Towers Audit of Trade Receivables... 383 P200,000 Regular sales, but company has renegotiated its account balance due because of defective merchandise. Management has indicated it has issued a credit to the company, but because management had inspected the goods on the customer's property, it did not require the return of the merchandise. It expects the company to pay the P200,000. P175,000 Regular sales. This is a new company. Most of the sales (P100,000) were made in December. P100,000 Regular sales. Customer is negotiating a potential return of defective items. P100,000 Will is a large company. Prior experience indicates that it does not respond to confirmations. P54,110 Customer is new this year and is located in BGC, Makati. Required: a. Indicate the audit procedures (and be specific as to what those procedures will accomplish) to complete the work on accounts receivable related to the confirmation process. In other words, identify the specific alternative audit procedures that should be performed. b. Assuming that all items could not be cleared to the auditor's satisfaction, identify the audit procedures that should be implemented to finish auditing the valuation and existence assertions for accounts receivable. Colleen Hi-Fi Ben Specialties Cely Electronics Will Pipeline Leng Tom Towers Audit of Trade Receivables... 383 P200,000 Regular sales, but company has renegotiated its account balance due because of defective merchandise. Management has indicated it has issued a credit to the company, but because management had inspected the goods on the customer's property, it did not require the return of the merchandise. It expects the company to pay the P200,000. P175,000 Regular sales. This is a new company. Most of the sales (P100,000) were made in December. P100,000 Regular sales. Customer is negotiating a potential return of defective items. P100,000 Will is a large company. Prior experience indicates that it does not respond to confirmations. P54,110 Customer is new this year and is located in BGC, Makati. Required: a. Indicate the audit procedures (and be specific as to what those procedures will accomplish) to complete the work on accounts receivable related to the confirmation process. In other words, identify the specific alternative audit procedures that should be performed. b. Assuming that all items could not be cleared to the auditor's satisfaction, identify the audit procedures that should be implemented to finish auditing the valuation and existence assertions for accounts receivable.