Management

Assertions About
Accounts Balances General Balance - Related Audit Objectives Specific Balance - Related Audit Objectives
and Related
Disclosures

Existence Existence—Amounts Included Exist The accounts receivable on the aged trial balance exist (existence).

Completeness—Existing Amounts and Related Existing accounts receivable are included in the aged trial balance
Completeness Disclosures Are Included (completeness).
Accuracy—Amounts Included Are Stated at the
Correct Amounts, and Disclosures Are Accounts receivable in the trial balance are accurate (accuracy).
Appropriately Measured and Described

Cutoff—Transactions Near the Balance Sheet Transactions in the sales and collection cycle are re-corded in the
Date Are Recorded in the Proper Period proper period (cutoff).
Accuracy Detail Tie-In—Details in the Account Balance
Accounts receivable in the aged trial balance agree with related
Agree With Related Master File Amounts, Foot
master file amounts, and the total is correctly added and agrees with
to the Total in the Account Balance, and Agree
the general ledger (detail tie-in).
With the Total in the General Ledger

Realizable Value—Assets Are Included at the

Accounts receivable are stated at realizable value (realiz-able value).
Amounts Estimated to Be Realized
Classification—Amounts Included in the Accounts receivable on the aged trial balance are cor-rectly classified
Classification Client’s Listing Are Properly Classified (classification).
Rights and Rights and Obligations: Assets must be owned, The client has rights to accounts receivable on the trial balance
obligations liabilities must belong to the entity. (rights).
Presentation—Amounts Are Appropriately
Aggregated or Disaggregated and Described, Accounts receivable are appropriately aggregated, and related
Presentation and Disclosures Are Relevant and disclosures are relevant and understandable (presentation).
Understandable
 Specific Balance - Related
Audit Objectives Audit Procedures - Design Format

Confirm accounts receivable, using positive

confirmations. Confirm all amounts over $100,000 and a
statistical sample of the remainder (10). 10
The accounts receivable on
the aged trial balance exist Perform alternative procedures for all confirmations not
(existence). returned on the first or second request (II). 11
Review accounts receivable trial balance for large and
unusual receivables (3). 3
Existing accounts
receivable are included in Trace five accounts from the accounts receivable master
the aged trial balance file to the aged trial balance (9).
(completeness). 9
Confirm accounts receivable, using positive
confirmations. Confirm all amounts over $100,000 and a
statistical sample of the remainder (10). 10
Accounts receivable in the
Perform alternative procedures for all confirmations not
trial balance are accurate
returned on the first or second request (II).
(accuracy). 11

Review accounts receivable trial balance for large and

unusual receivables (3). 3
Select the last 20 sales transactions from the current
year's sales journal and the first 20 from the subsequent
Transactions in the sales year's and trace each to the related shipping documents,
and collection cycle are checking for the date of actual shipment and the correct
re-corded in the proper record-ing (14). 14
period (cutoff). Review large sales returns and allowances before and
after the balance sheet date to determine whether they
are recorded in the correct period (15). 15
Accounts receivable in the
 are recorded in the correct period (15). 15
Accounts receivable in the Obtain the accounts receivable aged trial balance and
aged trial balance agree trace the balance to the general ledger (1).
with related master file 1
amounts, and the total is Use audit software to foot and cross-foot the aged trial
correctly added and agrees balance (2). 2
with the general ledger Trace 10 accounts from the trial balance to accounts on
(detail tie-in). master file (8). 8
Trace 10 accounts from the aged trial balance to the
accounts receivable master file to test for correctness of
aging and the balance (8). 8
Use audit software to foot and cross-foot the aged trial
balance (2). 2
Accounts receivable are
Discuss with the credit manager the likelihood of
stated at realizable value
collecting older accounts. Examine subsequent cash
(realiz-able value).
receipts and the credit file on all accounts over 90 days
and evaluate whether the receivables are collectible
(12). 12
Evaluate whether the allowance is adequate after
performing other audit proce-dures for collectibility of
receivables (13). 13
Review the receivables listed on the aged trial balance
Accounts receivable on the
for notes and related party receivables (5).
aged trial balance are 5
cor-rectly classified Inquire of management whether there are any related
(classification). party notes or long-term receivables included in the trial
balance (6). 6
Review the minutes of the board of directors meetings
The client has rights to for any indication of pledged or factored accounts
accounts receivable on the receivable (7). 7
trial balance (rights). Inquire of management whether any receivables are
pledged or factored (7). 7
Accounts receivable are
Trace amounts receivable from related parties per the
appropriately aggregated,
aged trial balance to proper disclosure in the footnotes
and related disclosures are
to the financial statements (16). 16
relevant and
understandable Read footnote disclosures related to accounts receivable
(presentation). and evaluate relevance and understandability (17). 17
 Specific Balance - Related
Audit Objectives Audit Procedures - Design Format

Confirm accounts receivable, using positive

confirmations. Confirm all amounts over $100,000 and a
statistical sample of the remainder (10). 10
The accounts receivable on
the aged trial balance exist Perform alternative procedures for all confirmations not
(existence). returned on the first or second request (II). 11
Review accounts receivable trial balance for large and
unusual receivables (3). 3
Existing accounts
receivable are included in Trace five accounts from the accounts receivable master
the aged trial balance file to the aged trial balance (9).
(completeness). 9
Confirm accounts receivable, using positive
confirmations. Confirm all amounts over $100,000 and a
statistical sample of the remainder (10). 10
Accounts receivable in the
Perform alternative procedures for all confirmations not
trial balance are accurate
returned on the first or second request (II).
(accuracy). 11

Review accounts receivable trial balance for large and

unusual receivables (3). 3
Select the last 20 sales transactions from the current
year's sales journal and the first 20 from the subsequent
Transactions in the sales year's and trace each to the related shipping documents,
and collection cycle are checking for the date of actual shipment and the correct
re-corded in the proper record-ing (14). 14
period (cutoff). Review large sales returns and allowances before and
after the balance sheet date to determine whether they
are recorded in the correct period (15). 15
Accounts receivable in the Obtain the accounts receivable aged trial balance and
aged trial balance agree trace the balance to the general ledger (1).
with related master file 1
amounts, and the total is Use audit software to foot and cross-foot the aged trial
correctly added and agrees balance (2). 2
with the general ledger Trace 10 accounts from the trial balance to accounts on
(detail tie-in). master file (8). 8
Trace 10 accounts from the aged trial balance to the
accounts receivable master file to test for correctness of
aging and the balance (8). 8
Use audit software to foot and cross-foot the aged trial
balance (2). 2
Accounts receivable are
Discuss with the credit manager the likelihood of
stated at realizable value
collecting older accounts. Examine subsequent cash
(realiz-able value).
receipts and the credit file on all accounts over 90 days
and evaluate whether the receivables are collectible
(12). 12
Evaluate whether the allowance is adequate after
performing other audit proce-dures for collectibility of
receivables (13). 13
Review the receivables listed on the aged trial balance
Accounts receivable on the
for notes and related party receivables (5).
aged trial balance are 5
cor-rectly classified Inquire of management whether there are any related
(classification). party notes or long-term receivables included in the trial
balance (6). 6
Review the minutes of the board of directors meetings
The client has rights to for any indication of pledged or factored accounts
accounts receivable on the receivable (7). 7
trial balance (rights). Inquire of management whether any receivables are
pledged or factored (7). 7
Accounts receivable are
Trace amounts receivable from related parties per the
appropriately aggregated,
aged trial balance to proper disclosure in the footnotes
and related disclosures are
to the financial statements (16). 16
relevant and
understandable Read footnote disclosures related to accounts receivable
(presentation). and evaluate relevance and understandability (17). 17
 Audit Procedures - Design Format Audit Procedures - Performance Format

Confirm accounts receivable, using positive confirmations. Confirm all amounts over
$100,000 and a statistical sample of the remainder (10). 1. Obtain the accounts receivable aged trial balance and trace the balance to the general ledger.
10
Perform alternative procedures for all confirmations not returned on the first or second
request (II). 11 2. Use audit software to foot and cross-foot the aged trial balance.
Review accounts receivable trial balance for large and unusual receivables (3). 3

Trace five accounts from the accounts receivable master file to the aged trial balance
3. Review aged trial balance for large and unusual receivables.
(9).
9 4. Calculate analytical procedures indicated in carry-forward audit schedules (not included) and follow
Confirm accounts receivable, using positive confirmations. Confirm all amounts over up on any significant changes from prior years.
$100,000 and a statistical sample of the remainder (10). 10
Perform alternative procedures for all confirmations not returned on the first or second 5. Review the receivables listed on the aged trial balance for notes and related party receivables.
request (II). 11
6. Inquire of management whether there are any related party notes or long-term receivables
Review accounts receivable trial balance for large and unusual receivables (3). 3 included in the trial balance.
Select the last 20 sales transactions from the current year's sales journal and the first 7. Review the minutes of the board of directors meetings and inquire of management to determine
20 from the subsequent year's and trace each to the related shipping documents, whether any receivables are pledged or factored.
checking for the date of actual shipment and the correct record-ing (14).
14 8. Trace 10 accounts from the aged trial balance to the accounts receivable master file to test for
Review large sales returns and allowances before and after the balance sheet date to correctness of aging and the balance.
determine whether they are recorded in the correct period (15). 15

Obtain the accounts receivable aged trial balance and trace the balance to the general 9. Trace five accounts from the accounts receivable master file to the aged trial balance.
ledger (1). 1

Use audit software to foot and cross-foot the aged trial balance (2).
2
10. Confirm accounts receivable, using positive confirmations. Confirm all amounts over $100,000 and
Trace 10 accounts from the trial balance to accounts on master file (8).
select a statistical sample using audit software for the remaining accounts.
8

Trace 10 accounts from the aged trial balance to the accounts receivable master file to
test for correctness of aging and the balance (8).
I I. Perform alternative procedures for all confirmations not returned on the first or second request.
8

Use audit software to foot and cross-foot the aged trial balance (2). 12.Discuss with the credit manager the likelihood of collecting older accounts. Examine subsequent
2
cash receipts and the credit file on all larger accounts over 90 days and evaluate whether the
Discuss with the credit manager the likelihood of collecting older accounts. Examine
subsequent cash receipts and the credit file on all accounts over 90 days and evaluate
receivables are collected.
whether the receivables are collectible (12).
12 13. Evaluate whether the allowance is adequate after performing other audit procedures for
Evaluate whether the allowance is adequate after performing other audit proce-dures collectibility of receivables.
for collectibility of receivables (13). 13
Review the receivables listed on the aged trial balance for notes and related party 14.Select the last 20 sales transactions from the current year’s sales journal and the first 20 from the
receivables (5). 5
subsequent year’s and trace each to the related shipping documents, checking for the date of actual
Inquire of management whether there are any related party notes or long-term shipment and the correct recording.
receivables included in the trial balance (6). 6

Review the minutes of the board of directors meetings for any indication of pledged or 15.Review large sales returns and allowances before and after the balance sheet date to determine
factored accounts receivable (7). 7 whether they are recorded in the correct period.
Inquire of management whether any receivables are pledged or factored (7). 7 16. Trace amounts receivable from related parties per the aged trial balance to proper disclosure in the
Trace amounts receivable from related parties per the aged trial balance to proper footnotes to the financial statements.
disclosure in the footnotes to the financial statements (16).
16
17. Read footnote disclosures related to accounts receivable and evaluate relevance and
Read footnote disclosures related to accounts receivable and evaluate relevance and
understandability.
understandability (17). 17
 Audit Procedures - Design Format Audit Procedures - Performance Format

Confirm accounts receivable, using positive confirmations. Confirm all amounts over
$100,000 and a statistical sample of the remainder (10). 1. Obtain the accounts receivable aged trial balance and trace the balance to the general ledger.
10
Perform alternative procedures for all confirmations not returned on the first or second
request (II). 11 2. Use audit software to foot and cross-foot the aged trial balance.
Review accounts receivable trial balance for large and unusual receivables (3). 3

Trace five accounts from the accounts receivable master file to the aged trial balance
3. Review aged trial balance for large and unusual receivables.
(9).
9 4. Calculate analytical procedures indicated in carry-forward audit schedules (not included) and follow
Confirm accounts receivable, using positive confirmations. Confirm all amounts over up on any significant changes from prior years.
$100,000 and a statistical sample of the remainder (10). 10
Perform alternative procedures for all confirmations not returned on the first or second 5. Review the receivables listed on the aged trial balance for notes and related party receivables.
request (II). 11
6. Inquire of management whether there are any related party notes or long-term receivables
Review accounts receivable trial balance for large and unusual receivables (3). 3 included in the trial balance.
Select the last 20 sales transactions from the current year's sales journal and the first 7. Review the minutes of the board of directors meetings and inquire of management to determine
20 from the subsequent year's and trace each to the related shipping documents, whether any receivables are pledged or factored.
checking for the date of actual shipment and the correct record-ing (14).
14 8. Trace 10 accounts from the aged trial balance to the accounts receivable master file to test for
Review large sales returns and allowances before and after the balance sheet date to correctness of aging and the balance.
determine whether they are recorded in the correct period (15). 15

Obtain the accounts receivable aged trial balance and trace the balance to the general 9. Trace five accounts from the accounts receivable master file to the aged trial balance.
ledger (1). 1
 ledger (1). 1

Use audit software to foot and cross-foot the aged trial balance (2).
2
10. Confirm accounts receivable, using positive confirmations. Confirm all amounts over $100,000 and
Trace 10 accounts from the trial balance to accounts on master file (8).
select a statistical sample using audit software for the remaining accounts.
8

Trace 10 accounts from the aged trial balance to the accounts receivable master file to
test for correctness of aging and the balance (8).
I I. Perform alternative procedures for all confirmations not returned on the first or second request.
8

Use audit software to foot and cross-foot the aged trial balance (2). 12.Discuss with the credit manager the likelihood of collecting older accounts. Examine subsequent
2
cash receipts and the credit file on all larger accounts over 90 days and evaluate whether the
Discuss with the credit manager the likelihood of collecting older accounts. Examine
subsequent cash receipts and the credit file on all accounts over 90 days and evaluate
receivables are collected.
whether the receivables are collectible (12).
12 13. Evaluate whether the allowance is adequate after performing other audit procedures for
Evaluate whether the allowance is adequate after performing other audit proce-dures collectibility of receivables.
for collectibility of receivables (13). 13
Review the receivables listed on the aged trial balance for notes and related party 14.Select the last 20 sales transactions from the current year’s sales journal and the first 20 from the
receivables (5). 5
subsequent year’s and trace each to the related shipping documents, checking for the date of actual
Inquire of management whether there are any related party notes or long-term shipment and the correct recording.
receivables included in the trial balance (6). 6

Review the minutes of the board of directors meetings for any indication of pledged or 15.Review large sales returns and allowances before and after the balance sheet date to determine
factored accounts receivable (7). 7 whether they are recorded in the correct period.
Inquire of management whether any receivables are pledged or factored (7). 7 16. Trace amounts receivable from related parties per the aged trial balance to proper disclosure in the
Trace amounts receivable from related parties per the aged trial balance to proper footnotes to the financial statements.
disclosure in the footnotes to the financial statements (16).
16
17. Read footnote disclosures related to accounts receivable and evaluate relevance and
Read footnote disclosures related to accounts receivable and evaluate relevance and
understandability.
understandability (17). 17
1. Obtain the accounts receivable aged trial balance and trace the balance to the general ledger.
2. Use audit software to foot and cross-foot the aged trial balance.
3. Review aged trial balance for large and unusual receivables.
4. Calculate analytical procedures indicated in carry-forward audit schedules (not included) and follow
up on any significant changes from prior years.
5. Review the receivables listed on the aged trial balance for notes and related party receivables.
6. Inquire of management whether there are any related party notes or long-term receivables
included in the trial balance.
7. Review the minutes of the board of directors meetings and inquire of management to determine
whether any receivables are pledged or factored.
8. Trace 10 accounts from the aged trial balance to the accounts receivable master file to test for
correctness of aging and the balance.
9. Trace five accounts from the accounts receivable master file to the aged trial balance.
10. Confirm accounts receivable, using positive confirmations. Confirm all amounts over $100,000 and
select a statistical sample using audit software for the remaining accounts.
I I. Perform alternative procedures for all confirmations not returned on the first or second request.
12.Discuss with the credit manager the likelihood of collecting older accounts. Examine subsequent
cash receipts and the credit file on all larger accounts over 90 days and evaluate whether the
receivables are collected.
13. Evaluate whether the allowance is adequate after performing other audit procedures for
collectibility of receivables.
14.Select the last 20 sales transactions from the current year’s sales journal and the first 20 from the
subsequent year’s and trace each to the related shipping documents, checking for the date of actual
shipment and the correct recording.
15.Review large sales returns and allowances before and after the balance sheet date to determine
whether they are recorded in the correct period.
16. Trace amounts receivable from related parties per the aged trial balance to proper disclosure in the
footnotes to the financial statements.
17. Read footnote disclosures related to accounts receivable and evaluate relevance and
understandability.
 Management
Assertions About
General Balance - Specific Balance - Related
Accounts Balances
Related Audit Objectives Audit Objectives Audit Procedures - Design Format Audit Procedures - Performance Format
and Related
Disclosures
Confirm accounts receivable, using positive
confirmations. Confirm all amounts over $100,000 and a 1. Obtain the accounts receivable aged trial balance and trace the balance to the general ledger.
statistical sample of the remainder (10). 10
The accounts receivable on
Existence—Amounts
Existence Included Exist
the aged trial balance exist Perform alternative procedures for all confirmations not
(existence). returned on the first or second request (II). 11 2. Use audit software to foot and cross-foot the aged trial balance.
Review accounts receivable trial balance for large and
unusual receivables (3). 3
Existing accounts
Completeness—Existing
receivable are included in Trace five accounts from the accounts receivable master
3. Review aged trial balance for large and unusual receivables.
Completeness Amounts and Related
the aged trial balance file to the aged trial balance (9).
Disclosures Are Included
(completeness). 9 4. Calculate analytical procedures indicated in carry-forward audit schedules (not included) and follow
Confirm accounts receivable, using positive
Accuracy—Amounts
confirmations. Confirm all amounts over $100,000 and a up on any significant changes from prior years.
statistical sample of the remainder (10). 10
Included Are Stated at
Accounts receivable in the
the Correct Amounts, and
trial balance are accurate
Perform alternative procedures for all confirmations not 5. Review the receivables listed on the aged trial balance for notes and related party receivables.
Disclosures Are returned on the first or second request (II).
(accuracy). 11
Appropriately Measured
and Described 6. Inquire of management whether there are any related party notes or long-term receivables
Review accounts receivable trial balance for large and
unusual receivables (3). 3 included in the trial balance.
Select the last 20 sales transactions from the current
year's sales journal and the first 20 from the subsequent
7. Review the minutes of the board of directors meetings and inquire of management to determine
Cutoff—Transactions Transactions in the sales year's and trace each to the related shipping documents, whether any receivables are pledged or factored.
Near the Balance Sheet and collection cycle are checking for the date of actual shipment and the correct
Date Are Recorded in the re-corded in the proper record-ing (14). 14 8. Trace 10 accounts from the aged trial balance to the accounts receivable master file to test for
Proper Period period (cutoff). Review large sales returns and allowances before and
after the balance sheet date to determine whether they
correctness of aging and the balance.
are recorded in the correct period (15). 15
Detail Tie-In—Details in
Accounts receivable in the Obtain the accounts receivable aged trial balance and
9. Trace five accounts from the accounts receivable master file to the aged trial balance.
the Account Balance
aged trial balance agree trace the balance to the general ledger (1).
Accuracy Agree With Related
with related master file 1
Master File Amounts, Use audit software to foot and cross-foot the aged trial
Foot to the Total in the
amounts, and the total is
correctly added and agrees balance (2). 2
10. Confirm accounts receivable, using positive confirmations. Confirm all amounts over $100,000 and
Account Balance, and
Agree With the Total in
with the general ledger Trace 10 accounts from the trial balance to accounts on select a statistical sample using audit software for the remaining accounts.
(detail tie-in). master file (8).
the General Ledger 8
Trace 10 accounts from the aged trial balance to the
accounts receivable master file to test for correctness of I I. Perform alternative procedures for all confirmations not returned on the first or second request.
aging and the balance (8). 8
Use audit software to foot and cross-foot the aged trial
balance (2).
12.Discuss with the credit manager the likelihood of collecting older accounts. Examine subsequent
Realizable Value—Assets 2
Are Included at the
Accounts receivable are
stated at realizable value
Discuss with the credit manager the likelihood of cash receipts and the credit file on all larger accounts over 90 days and evaluate whether the
Amounts Estimated to Be collecting older accounts. Examine subsequent cash
Realized
(realiz-able value).
receipts and the credit file on all accounts over 90 days
receivables are collected.
and evaluate whether the receivables are collectible
(12). 12 13. Evaluate whether the allowance is adequate after performing other audit procedures for
Evaluate whether the allowance is adequate after
performing other audit proce-dures for collectibility of collectibility of receivables.
receivables (13). 13

Classification—Amounts Accounts receivable on the

Review the receivables listed on the aged trial balance 14.Select the last 20 sales transactions from the current year’s sales journal and the first 20 from the
for notes and related party receivables (5).
5
Classification
Included in the Client’s
Listing Are Properly
aged trial balance are
cor-rectly classified
subsequent year’s and trace each to the related shipping documents, checking for the date of actual
Inquire of management whether there are any related
Classified (classification). party notes or long-term receivables included in the trial shipment and the correct recording.
balance (6). 6

Rights and Obligations:

The client has rights to
Review the minutes of the board of directors meetings
for any indication of pledged or factored accounts
15.Review large sales returns and allowances before and after the balance sheet date to determine
Rights and Assets must be owned,
obligations liabilities must belong to
accounts receivable on the receivable (7). 7 whether they are recorded in the correct period.
trial balance (rights). Inquire of management whether any receivables are
the entity.
pledged or factored (7). 7 16. Trace amounts receivable from related parties per the aged trial balance to proper disclosure in the
Presentation—Amounts Accounts receivable are
Are Appropriately appropriately aggregated,
Trace amounts receivable from related parties per the footnotes to the financial statements.
aged trial balance to proper disclosure in the footnotes
Presentation
Aggregated or
Disaggregated and
and related disclosures are
relevant and
to the financial statements (16). 16 17. Read footnote disclosures related to accounts receivable and evaluate relevance and
Described, and understandable Read footnote disclosures related to accounts receivable understandability.
Disclosures Are Relevant (presentation). and evaluate relevance and understandability (17). 17
 Audit Procedures - Performance Format Jenis Bukti Audit Schedule : Date
1. Pemeriksaan fisik
2. Konfirmasi Prepared by Client: 1/5/20
1. Obtain the accounts receivable aged trial balance and trace the balance to the general ledger.
3. Inspeksi
2. Use audit software to foot and cross-foot the aged trial balance. 4. Prosedur Analitis Approved by :
5. Tanyajawab dengan Klien

3. Review aged trial balance for large and unusual receivables. 6. Perhitungan ulang
7. Reperformance
4. Calculate analytical procedures indicated in carry-forward audit schedules (not included) and follow
up on any significant changes from prior years.
8. Pengamatan Starkwood Group Accounts Receivable Aged Trial Balance 12/31/19
5. Review the receivables listed on the aged trial balance for notes and related party receivables. Jenis Bukti Audit Aging, Based on Invoice Date
Physical examination Over 120
6. Inquire of management whether there are any related party notes or long-term receivables Account Balance 91-120
The inspection or count by Customer 0-30 days 31-60 days 61-90 days
included in the trial balance. the auditor of a tangible asset Number 12/31/19 days days
7. Review the minutes of the board of directors meetings and inquire of management to determine Confirmation
whether any receivables are pledged or factored. The receipt of a direct w ritten
response from a third party
8. Trace 10 accounts from the aged trial balance to the accounts receivable master file to test for 1011 Adams Supply 146,589 90,220 56,369
verifying the accuracy of
correctness of aging and the balance. inform ation that w as
requested 1044 Argonaut, Inc. 30,842 30,842
9. Trace five accounts from the accounts receivable master file to the aged trial balance.
Inspection
The auditor’s exam ination of 1100 Atwater Brothers 210,389 210,389
10. Confirm accounts receivable, using positive confirmations. Confirm all amounts over $100,000 and the client’s docum ents and
select a statistical sample using audit software for the remaining accounts. records 1191 Beekman Bearings 83,526 73,526 10,000
Analytical procedures
The evaluations of financial 1270 Brown and Phillips 60,000 60,000
I I. Perform alternative procedures for all confirmations not returned on the first or second request. inform ation through analysis
of plausible relationships Christopher
12.Discuss with the credit manager the likelihood of collecting older accounts. Examine subsequent am ong both financial and
1301 15,789 15,789
Plumbing
cash receipts and the credit file on all larger accounts over 90 days and evaluate whether the nonfinancial data
receivables are collected. Inquiries of the client
The obtaining of w ritten or
13. Evaluate whether the allowance is adequate after performing other audit procedures for oral inform ation from the
collectibility of receivables. client in response to
questions from the auditor Travelers
14.Select the last 20 sales transactions from the current year’s sales journal and the first 20 from the Recalculation 9733 59,576 59,576
Equipment
subsequent year’s and trace each to the related shipping documents, checking for the date of actual Rechecking a sam ple of
shipment and the correct recording. calculations m ade by the client Underhill Parts and
9742
15.Review large sales returns and allowances before and after the balance sheet date to determine Reperformance Maintenance 179,263 179,263
The auditor’s independent
whether they are recorded in the correct period.
tests of client accounting
9810 UJW Co. 102,21 1 34,91 1 34,700 32,600
16. Trace amounts receivable from related parties per the aged trial balance to proper disclosure in the procedures or controls
footnotes to the financial statements. Observation
9907 Zephyr Plastics 286,300 186,000 100,300
17. Read footnote disclosures related to accounts receivable and evaluate relevance and Consists of looking at a
understandability. process or procedure being 20,196,800 14,217,156 2,869,366 1,408,642 1,038,926 662,710
perform ed by others
Account Balance Schedule : Date
Customer Prepared by Client: 1/5/20
Number 12/31/19
Approved by :

1011 Adams Supply 146,589

Starkwood Group Accounts Receivable Aged Trial Balance 12/31/19
1044 Argonaut, Inc. 30,842 Aging, Based on Invoice Date
Account Balance 91-120 Over 120
1100 Atwater Brothers 210,389 Customer 0-30 days 31-60 days 61-90 days
days
Number 12/31/19 days
1191 Beekman Bearings 83,526
1011 Adams Supply 146,589 90,220 56,369
1270 Brown and Phillips 60,000 1044 Argonaut, Inc. 30,842 30,842
1100 Atwater Brothers 210,389 210,389
1301 Christopher Plumbing 15,789 1191 Beekman Bearings 83,526 73,526 10,000
1270 Brown and Phillips 60,000 60,000
Christopher
1301 15,789 15,789
Plumbing

9733 Travelers Equipment 59,576

Travelers
9742 Underhill Parts and Maintenance
179,263 9733
Equipment
59,576 59,576

Underhill Parts and

9810 UJW Co. 102,21 1 9742
Maintenance 179,263 179,263
9810 UJW Co. 102,21 1 34,91 1 34,700 32,600
9907 Zephyr Plastics 286,300
9907 Zephyr Plastics 286,300 186,000 100,300
20,196,800 20,196,800 14,217,156 2,869,366 1,408,642 1,038,926 662,710