Question

The following are common tests of details of balances or substantive analytical procedures for the audit of accounts? receivable

1.	Select 10 customer accounts from the accounts receivable master file and trace to the aged accounts receivable listing to verify name and amount.
2.	Select 10 customer accounts from the aged accounts receivable listing and trace to the accounts receivable master file for? name, amount, and aging categories.
3.	Obtain a list of aged accounts? receivable, foot and? cross-foot the? list, and trace the total to the general ledger.
4.	Compute accounts receivable turnover for the current year and compare to the prior year.
5.	Perform alternative procedures on accounts not responding to second requests by examining subsequent cash receipts documentation and shipping reports or sales invoices.
6.	Request 30 positive and 50 negative confirmations of accounts receivable.

the icon to view the test of details of balances and substantive analytical? procedures.)

Requirements

a.	For each audit? procedure, identify the? balance-related audit objective or objectives it partially or fully satisfies.
b.	In which order would the auditor perform the six? procedures? Briefly justify your answer.

Requirement a. For each audit? procedure, identify the? balance-related audit objective or objectives it partially or fully satisfies. ?(If a box is not used in the table leave the box? empty; do not select a? label.)

Objections Options

Accuracy Completeness Detail tie-in Existence Realizable Value

Audit Procedure	Objective(s)
1. Select 10 customer accounts from the accounts receivable master file and trace to
the aged accounts receivable listing to verify name and amount.
2. Select 10 customer accounts from the aged accounts receivable listing and trace to
the accounts receivable master file for name, amount, and aging categories.
3. Obtain a list of aged accounts receivable, foot and cross-foot the list, and trace the
total to the general ledger.
4. Compute accounts receivable turnover for the current year and compare to the
prior year.
5. Perform alternative procedures on accounts not responding to second requests by
examining subsequent cash receipts documentation and shipping reports or sales invoices.
6. Request 30 positive and 50 negative confirmations of accounts receivable.

Requirement b. In which order would the auditor perform the six? procedures? Briefly justify your answer.

Select the order in which the auditor would perform the procedures.? Then, select an explanation for each audit procedure justifying the order you have selected. ?(Explanations may be used more than once or not at? all.)

Procedure Order	Explanation
1 2 3 4 5 6
Explanation Options Ensure completeness Ensure Correct aging Ensure existence Follow up confirm Preform procedures

Answer 1