summarize why the below post important in 2 paraghras

1. Tie-in

Meaning: Tie-in refers to the auditor's responsibility to ensure that amounts in the financial statements are consistent with the underlying accounting records and schedules.

Application to Accounts Receivable: In auditing accounts receivable, the tie-in assertion requires that the total in the accounts receivable subsidiary ledger agrees with the general ledger and the financial statements. The auditor ensures that the detailed listing of customer balances adds up to the total shown on the balance sheet (Arens et al., 2023).

2. Completeness

Meaning: Completeness asserts that all transactions and balances that should be recorded are included in the financial statements.

Application to Accounts Receivable: Auditors test for completeness by examining supporting documentation for sales near the end of the reporting period to verify that all receivables earned and due before the cutoff date are recorded (AICPA, 2019).

3. Existence

Meaning: The existence assertion confirms that recorded assets or liabilities actually exist at the reporting date.

Application to Accounts Receivable: The auditor uses confirmation procedures to verify that recorded receivables are legitimate and represent actual claims against customers (Arens et al., 2023). Negative or positive confirmations may be used depending on assessed risk.

4. Accuracy

Meaning: Accuracy involves ensuring that amounts and data related to transactions are recorded correctly.

Application to Accounts Receivable: Auditors verify the accuracy of account balances by matching invoice totals with shipping documents, customer orders, and sales journal entries (Messier et al., 2021). Adjustments for returns and allowances should also be accurate.

5. Rights

Meaning: The rights assertion confirms that the entity has ownership rights to the recorded assets.

Application to Accounts Receivable: Auditors examine contracts, factoring agreements, and bank pledges to ensure the entity has not transferred ownership or used receivables as collateral without disclosure (Whittington & Pany, 2022).

6. Realizable Value

Meaning: Realizable value refers to the net amount expected to be collected from an asset.

Application to Accounts Receivable: Auditors assess whether the allowance for doubtful accounts is adequate based on aging reports, customer payment history, and economic conditions (PCAOB, 2023). Overstated receivables violate this assertion.

7. Cutoff

Meaning: Cutoff ensures that transactions are recorded in the correct accounting period.

Application to Accounts Receivable: Auditors examine shipping documents and sales invoices near year-end to verify that revenue and corresponding receivables are recorded in the proper period (AICPA, 2019).

8. Classification

Meaning: Classification relates to whether transactions are recorded in the proper accounts and financial statement line items.

Application to Accounts Receivable: The auditor ensures that accounts receivable are correctly classified (e.g., current vs. non-current, related party transactions) and that proper disclosures are made in accordance with GAAP (Arens et al., 2023).