文档介绍：Chapter pleting the Tests in the Sales and Collection Cycle:Accounts Receivable
Completing the Tests in the
Sales and Collection Cycle:
Accounts Receivable
Chapter 12
Learning Objective 1
Describe the methodology
for designing tests of details
of balances using the
audit risk model3>.
Accounts Receivable Balance-Related Audit Objectives
Detail tie-in
Completeness
Classification
Existence
Accuracy
Cutoff
Realizable
value
Rights and
obligations
Presentation
and disclosure
Methodology for Designing Tests of
Balances – Accounts Receivable
Identify client business risks
affecting accounts receivable.
Set tolerable misstatement
and assess inherent risk
for accounts receivable.
Assess control risk for sales
and collection cycle.
Methodology for Designing Tests of
Balances – Accounts Receivable
Design and perform tests of
controls and substantive tests
of transactions for sales and
collection cycle.
Design and perform analytical
procedures for accounts
receivable balance.
Methodology for Designing Tests of
Balances – Accounts Receivable
Design tests of details of
accounts receivable balance
to satisfy balance-related
audit objectives.
Audit procedures
Sample size
Items to select
Timing
Relationship Between Sales and Accounts Receivable
Existence
Completeness
Accuracy
Classification
Timing
Presentation
and disclosure
×
Detail tie-in
Existence
Completeness
Accuracy
Classification
Cutoff
Realizable
value
Rights
Posting/Summary
Accounts Receivable
Balance-Related
Audit Objectives
Translation-Related
Audit Objectives
Sales
×
×
×
×
×
Relationship Between Sales and Accounts Receivable
Existence
Completeness
Accuracy
Classification
Timing
Presentation
and disclosure
Detail tie-in
Existence
Completeness
Accuracy
Classification
Cutoff
Realizable
value
Rights
Posting/Summary
Accounts Receivable
Balance-Related
Audit Objectives
Translation-Related
Audit Objectives
Cash receipts
×