Question

What is the type of assertion and evidence type?

Foot several accounts in the A/R subsidiary ledger and agree the total from the subsidiary ledger to the general ledger.

Select a sample of shipping documents representing credit sales during the year and trace them into the sales journal and A/R subsidiary ledger.

Select a sample of credit sales transactions during the last week of 2017 from the sales journal and vouch to related shipping documents and invoices noting whether they are recorded in correct period.

Discuss with the client personnel their method for computing allowance for doubtful accounts to determine reasonableness. Discuss the collectability of any large accounts 90 day past due.

Answer 1

Foot several accounts in the A/R subsidiary ledger and agree the total from the subsidiary ledger to the general ledger.

This can be matched from the customer account from the balance sheet.

Select a sample of shipping documents representing credit sales during the year and trace them into the sales journal and A/R subsidiary ledger.

The evidence of the shipping can be some custom declaration and this can be checked from the P&L and the customer ledger.

Select a sample of credit sales transactions during the last week of 2017 from the sales journal and vouch to related shipping documents and invoices noting whether they are recorded in correct period.

This can be verified from the closing balance on the customer account.

Discuss with the client personnel their method for computing allowance for doubtful accounts to determine reasonableness. Discuss the collectability of any large accounts 90 day past due.

This can be verified from the AR aging summary report