16-26

a. b.
PROCEDURE TYPE OF TEST BALANCE-RELATED AUDIT OBJECTIVE
1 Test of details Existence and accuracy
2 Test of details Cutoff
3 S T of T Cutoff
Accuracy and existence
(may also include realizable value if cash
4 Test of details receipts examined are for older accounts)
5 S T of T Classification
6 S T of T Rights
7 Test of details Completeness
8 ST of T Existence
9 Test of control Accuracy
10 S T of T Completeness
11 Test of details Detail tie-in
12 S T of T Detail tie-in
13 Test of details Classification

16-28

AUDIT PROCEDURE AUDIT OBJECTIVE

a. Add the columns on the aged trial (1) Accounts receivable are correctly added
balance and compare the total with the and agree with the master file and the
general ledger. general ledger.
b. Discuss with the sales manager whether (6) Cutoff for accounts receivable is correct.
any sales allowances have been granted
after the balance sheet date that may
apply to the current period.
c. Compare the date on a sample of (3) Existing accounts receivable are
shipping documents throughout the year included.
with related duplicate sales invoices and
the accounts receivable master file.
d. Compare the date on a sample of (6) Cutoff for accounts receivable is correct.
shipping documents a few days before
and after the balance sheet date with
related sales journal transactions.
e. Review minutes of board meetings and (8) The client has rights to accounts
loan documents to see if accounts receivable.
receivables have been sold or used as
 collateral.
f. Send positive confirmation to a large (2) Recorded accounts receivable exist
sample of the client’s debtors, And 4 Accounts receivable are accurate.
requesting that they confirm the
existence and dollar amount of their
outstanding receivable.