Page 70 - Demo

جميع الحقوق محفوظة ـ اإلعتداء عىل حق املؤلف 70 بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية Significant differences indicate potential cutoff problems in the test of yearend balances. 6- Posting and summarization: The auditor should trace the posting from sales journal to subsidiary AR ledger and sales account. Third: Design test of Details for accounting receivable BalancesThe objectives of auditing the AR balance are: 1) Existence: Recorded accounts receivable exists. o Confirmation of accounts receivable is the most important test of details of accounts receivable balance to determine that A/R actually exist 2) Completeness: all Existing accounts receivable are included.o However, the auditor can trace the shipping documents to the journal entries and subsidiary ledger. o Also, by examining the movement of inventory and tracing them to the sales invoices, he can discover any unrecorded sales and omitted AR 3) Accuracy: Accounts receivable is accurateoConfirmation of accounts balances selected from trial balance is the most common test of detail for accuracy. 4) Classification: Accounts receivable is correctly classified o Auditor must make sure the client correctly classified AR as Current or non- current & trade or Non trade. 5) Cutoff: Cutoff for accounts receivable is correcto Cutoff misstatements occur when current period transactions are recorded in the subsequent periods and vice versa