Procedures and Objective for Accounts Receivable Flashcards
1
Q
Determine that disclosures required by GAAP are properly presented
A
Review notes and other disclosures in the financial statements.
2
Q
Establish the gross valuation of receivables.
A
Vouch ending accounts receivable balances to sales agreements.
3
Q
Establish the completeness of receivables transactions.
A
Perform sales cutoff tests for the month following year-end to obtain assurance that sales transactions are recorded in the proper period.
4
Q
Establish that the client has rights to the record receivables.
A
Vouch ending accounts receivable balances to sales agreements.
5
Q
Determine that the valuation of receivables is at appropriate net realizable values.
A
Review the aged trial balance for significant past due accounts.
