Auditing and assurance services 14e by arens chapter 16

34 130 0
  • Loading ...
Loading...
1/34 trang

Thông tin tài liệu

Ngày đăng: 15/05/2017, 12:23

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable Chapter 16 http://www.authorstream.com/shengv n/ ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 5-5 Learning Objective Describe the methodology for designing tests of details of balances using the audit risk model ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - Accounts Receivable Balancerelated Audit Objectives Detail tie-in Rights Existence Completeness A/R Audit Objectives Realizable value Cutoff Accuracy Classification ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - Methodology for Designing Tests of Details of Balances for A/R Phase I Identify client business risks affecting Accounts Receivable Set tolerable misstatement and assess inherent risk for accounts receivable ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Assess control risk for sales and collection cycle 16 - Methodology for Designing Tests of Details of Balances for A/R Phase II Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - Methodology for Designing Tests of Details of Balances for A/R Phase III Design and perform analytical procedures for accounts receivable Audit procedures Sample size Design tests of details of accounts receivable balance to satisfy balance-related objectives Items to select ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Timing 16 - Occurrence Completeness Accuracy Posting and summarization Classification Timing × × Rights Realizable value Cutoff Classification Accuracy Sales Completeness Translation-related audit objectives Existence ACCOUNTS RECEIVABLE BALANCE-RELATED AUDIT OBJECTIVES Detail tie-in Relationship Between Sales and Accounts Receivable × × ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley × × 16 - Occurrence Completeness Accuracy Posting and summarization Classification Timing × Rights Realizable value Cutoff Classification Accuracy Cash receipts Completeness Translation-related audit objectives Existence ACCOUNTS RECEIVABLE BALANCE-RELATED AUDIT OBJECTIVES Detail tie-in Relationship Between Sales and Accounts Receivable × × × ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley × × 16 - Learning Objective Design and perform analytical procedures for accounts in the sales and collection cycle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - Analytical Procedures for the Sales and Collection Cycle Compare by product line:  Gross margin percentage with previous years  Sales by month over time  Sales returns and allowances as a percentage of gross sales with previous years ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 10 Learning Objective Obtain and evaluate accounts receivable confirmations ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 20 Confirmation Requirements Auditing Standards United States International Required Except when: Confirmations not required Expected low response rate Low inherent & control risks Alternate Procedures ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 21 Type of Confirmation  Positive confirmation Blank confirmation form Invoice confirmation Negative confirmation ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 22 Positive Confirmation ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 23 Negative Confirmation Requirements  Risk of material misstatement is low  Large number of small account balances  Expected low exception rate  Expect adequate consideration from recipients ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 24 Negative Confirmation ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 25 Timing The most reliable evidence from confirmations is obtained when they are sent as close to the balance sheet date as possible ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 26 Sampling Decisions Tolerable misstatement Inherent Risk Control Risk Sample Size factors Type of Confirmation ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Achieved Detection risk from other tests 16 - 27 Verifying Addresses and Maintaining Control The auditor should perform procedures to verify the addresses or email addresses used for confirmation Auditors must be responsible for mailing the confirmations and maintaining control of the confirmations until they are returned from the customer ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 28 Follow-up on Nonresponses When positive confirmations are used, AU 330 requires follow-up procedures for confirmations not returned by the customer Alternate Procedures Subsequent cash receipts Duplicate sales invoices ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Shipping documents 16 - 29 Analysis of Differences  Payment-in-transit Shipment-in-transit The goods have been returned Errors and disputes ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 30 Drawing Conclusions Reevaluate internal control Evaluate the qualitative nature of misstatements Determine whether sufficient evidence was obtained ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 31 Learning Objective Design audit procedures for the audit of accounts receivable, using an evidence planning worksheet as a guide ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 32 Evidence Planning Worksheet ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 16 - 33 End of Chapter 16 ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley 5-5 ... Auditing 14/e, Arens/ Elder/Beasley 16 - 13 Analytical Procedures: Sales and Collection Cycle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/ Elder/Beasley 16 - 14 Design and Perform... in the sales and collection cycle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/ Elder/Beasley 16 - Analytical Procedures for the Sales and Collection Cycle Compare by product line:... Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle ©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/ Elder/Beasley 16 - Methodology
- Xem thêm -

Xem thêm: Auditing and assurance services 14e by arens chapter 16 , Auditing and assurance services 14e by arens chapter 16 , Auditing and assurance services 14e by arens chapter 16

Gợi ý tài liệu liên quan cho bạn

Nhận lời giải ngay chưa đến 10 phút Đăng bài tập ngay
Nạp tiền Tải lên
Đăng ký
Đăng nhập