Name : Nadiatul Qalbi Amalia Rizqi

Student Number : 041911333077

Case related to sampling and audit of the revenue cycle

a. If I were the auditor, I’d choose the highest range of balances which is $50,000 or more since
usually material misstatement tend to happen in material amount. Since I choose the highest
range of balances, I’ll have 23 customers as my sample size and I’d choose customers who have
receivable outstanding over 60 days. Why I choose over 60 days? Because the chief has
informed that there’s an increase in the days outstanding and that’s worth to audit (?)
b. Because through confirmation the auditor would ask related party about the receivable either
it’s the amount, due-date or any questions related the receivable. But getting confirmations
through inside of the company has low degree of persuasive so that’s why there’s weak
evidence for completeness of the receivable balance.
c. I think most customers from range number 2 ($0-20,000) has high risk for outstanding
receivable since many people overdue the payment.