Page 70 - Auditinf Electronic System

o timing difference due to shipments and payments in transit at year end, may
require additional investigation, such as inspection of supporting documents.

6) Right and obligations: The client has rights to accounts receivable
o Auditors can review clients’ rights to A/R using confirmations
o If A portion of A/R used was Pledged as collateral, or sold at discount. The

confirmation of receivables will not be enough. So, auditor may review meetings
minutes, confirm with banks and examine debt contracts foe evidences of pledged
A/R as collaterals

7) Realizable value: Accounts receivable is stated at realizable value (Net
realizable value

o Realizable value of A/R (NRV = A/R – AFDA)
o AFDA is reasonable.

8) Detail tie-in: Accounts receivable in the aged trial balance agree with related
master file amounts, and the total is correctly added and agrees with the
general ledger
o A/R in subsidiary ledger is correctly added and agrees with the general
ledger

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬