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Audit Program For Account Receivable

The document outlines the audit procedures to test accounts receivable for an audit of Florendo, Villegas, Casintahan and Associates conducted on December 31, 2015. The procedures include validating accounts receivable and whether sales actually occurred, reconciling subledgers to control accounts, performing sales and cash receipts cutoff tests, tracing shipping documents to accounting entries, accounting for numbered documents, evaluating the company's right to collect receivables and collectability of receivables, examining return policies, assessing valuation of receivables, aging analyses, subsequent cash receipts, credit histories, and presentation and disclosure of sales and receivables.

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Justine Ann Villegas
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1K views

Audit Program For Account Receivable

The document outlines the audit procedures to test accounts receivable for an audit of Florendo, Villegas, Casintahan and Associates conducted on December 31, 2015. The procedures include validating accounts receivable and whether sales actually occurred, reconciling subledgers to control accounts, performing sales and cash receipts cutoff tests, tracing shipping documents to accounting entries, accounting for numbered documents, evaluating the company's right to collect receivables and collectability of receivables, examining return policies, assessing valuation of receivables, aging analyses, subsequent cash receipts, credit histories, and presentation and disclosure of sales and receivables.

Uploaded by

Justine Ann Villegas
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Audit Program for Account Receivable

Florendo, Villegas, Casintahan and Associates


Test of Controls: Account Receivable
December 31, 2015

Audit Procedures

Auditing Procedures - Accounts Receivable


Are accounts receivable valid?
Did sales actually occur?
Do the balances of sales and receivables
contain all transactions for the period?
Reconcile sub ledger to control account for
receivables.
Sales cut off test. Trace shipping documents
immediately prior and just after accounting
period to the accounting records. Focus on
FOB shipping point and FOB destination.
Cash receipts cut off test. Trace daily
remittance of payments to accounts receivable
credits.
Trace shipping documents to sales invoices
and accounting entries to determine if sales
were recorded appropriately.
Account for numerical of numbered
documents.
Does the client company have the right to
collect the receivables?
Track cash receipts to determine if collections

WP
Ref

Done
By

Date

match deposits in the company's bank


accounts.
Examine return policy. Evaluate
expected/actual returns before and after yearend. Evaluate past returns at this time period.
Are receivables valued at GAAP, i.e., net
realizable value?
Perform or evaluate clients aging schedule.
Trace cash receipts early in subsequent period.
Cash receipts in subsequent period provide
best evidence of collectibles.
Evaluate delinquent customers credit
histories.
Are sales and receivables appropriately
presented and is their appropriate note
disclosure?

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