accounts receivable

Question 1

ar procedures for existence assertion

Answer 1

verfiy mathematical accuracy-of the subsidiary ledger and agree total to general ledger account

confirm a sample of ar accounts

confirm material accounts and selected others
two types- positive and negative. positive is better

Question 2

existence assertion

perfrom _____for positve requests not answered. two types of alternate procedures are ______.

Answer 2

alternate procedures

subsequent cash receipts

inspect underlying adjustments

Question 3

completeness assertion

Answer 3

perform sales cutoff test a few days before and after year end

match shipping doc with related sales to verify sales were recorded in proper period

Question 4

rights and obligations assertion

Answer 4

inquire about any ar that has been used as collateral and review any loan docs for it.

Question 5

valuation assertion

Answer 5

review clients aged trial balance of A/R (apply analytical procedures based on estimated percentages, uncollectible by aged category). inquire about any large delinquent account balances

look at receiving reports after year end to check for significant sales returns