check reliability AR

Question 1

check if cash_not_ar = 1 have a collection data > invoice date

Answer 1

to see if cash transactions are recorded correctly

Question 2

check if the end balance of AR is correctly recorded

Answer 2

not correct it can mean that the information system is having some internal control weaknesses

Question 3

can AR be collected

Answer 3

the prediction of uncollectable AR affects the liquidity of the firm

Question 4

are sales recorded in the right time period

Answer 4

incorrect recording can lead to wrong financial statements

Question 5

do transactions information on AR match the trial balance information?

Answer 5

to control for the reliability of the data, no match could mean that there is for exampling missing transactions, recording errors / internal control weaknesses