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Discuss the meaning of the following terms and how they apply to auditing accounts receivable: tie-in,...

Discuss the meaning of the following terms and how they apply to auditing accounts receivable: tie-in, completeness, existence, accuracy, rights, realizable value, cutoff, classification.

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Accounts Receivable Balance-related Audit Objectives:-

1. 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. (Detail tie-in)

2. Recorded accounts receivable exist. (Existence)

3. Existing accounts receivable are included. (Completeness)

4. Accounts receivable are accurate. (Accuracy)

5. Accounts receivable are correctly classified. (Classification)

6. Cutoff for accounts receivable is correct. (Cutoff)

7. Accounts receivable is stated at realizable value. (Realizable value)

8. The client has rights to accounts receivable. (Rights)

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