4.08 - FIN STATEMENT ACCTS: RECEIVABLES Flashcards
4.08 - FIN STATEMENT ACCTS: RECEIVABLES
When an auditor decides to confirm
accounts receivable balances rather than individual invoices, it most likely
would be beneficial to include with the confirmations.
A) Lists of the customers’ recent payments that the client has already recorded.
B) Copies of the client’s shipping documents that support the account balances.
C) Client-prepared statements of account that show the details of the account balances.
D) Copies of the customers’ purchase orders that support the account balances
C) Client-prepared statements of account that show the details of the account balances.
A list of invoices providing details of account balances will make it easier for customers to verify amounts on confirmations and increase the likelihood that customers will respond.
Shipping documents provide proof of quantities shipped, but would not provide assistance in determining amounts owed.
A list of payments will allow the customer to determine if credit was received for all payments made, but would not assist in determining the amount owed.
Purchase orders, like shipping documents, verify legitimacy but not amount.
