Question

When testing accounts receivable, name two financial statement assertions that would not be satisfied by sending...

When testing accounts receivable, name two financial statement assertions that would not be satisfied by sending positive confirmation requests for reported account balances to the client’s customers?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
8. Confirmation of accounts receivable addresses which of the assertions about account balance? A) Occurrence. B)...
8. Confirmation of accounts receivable addresses which of the assertions about account balance? A) Occurrence. B) Existence. C) Completeness. D) Cut-off. 9. Which of the following would indicate the need to use positive accounts receivable confirmation requests? A) A large population consisting of very small balances. B) Good internal control over the credit sales process and account receivable accounting. C) Most customers are large reputable companies. D) Many accounts receivable with large ending balances are in dispute. 10. The audit...
Smith Jones CPA was auditing the financial statements of Titan Industries. When auditing accounts receivable, he...
Smith Jones CPA was auditing the financial statements of Titan Industries. When auditing accounts receivable, he realized the population was diverse and could be divided into two "separate" smaller populations. There were 5 accounts receivable that in total were $10,000. The remaining 45 account receivable balances totalled $17,000. Smith Jones was concerned that a random sample of the entire population would miss many of the 5 balances that totalled $10,000 but did not want to eliminate the possibility of testing...
The balance of the accounts receivable account of Griffin Ltd. at December 31, 2019 was $74,460....
The balance of the accounts receivable account of Griffin Ltd. at December 31, 2019 was $74,460. Included in this balance are the credit balances of two customers, amounting to $3,200 and $1,800. Required: 1. What amount for accounts receivable would be shown as assets on the balance sheet? 2. How would the credit balances in the customers’ accounts be   disclosed?
1. King, CPA, is auditing the financial statements of Cycle Company, a client that has receivables...
1. King, CPA, is auditing the financial statements of Cycle Company, a client that has receivables from customers arising from the sale of goods in the normal course of business. King is aware that the confirmation of accounts receivable is a generally accepted auditing procedure. Under what circumstances could King justify omitting the confirmation of Cycle's accounts receivable? 2. What alternative procedures could King consider performing when replies to positive confirmation requests are not received? 3. After checks are signed...
11B-3 Keystone Computers & Networks, Inc. (KCN), has 933 accounts receivable, with a total book value...
11B-3 Keystone Computers & Networks, Inc. (KCN), has 933 accounts receivable, with a total book value of $10,235,457. From that population, Adams, Barnes & Co. (ABC), CPAs, selected a sample of 260 accounts (142 unique accounts) for confirmation for the year ended December 31, 20X5, as illustrated by the working paper on page 503. First and second confirmation requests resulted in replies for all but 10 of those accounts. ABC performed alternative procedures on those 10 accounts and noted no...
In the audit of accounts receivable at XYZ company (the client), the gross amount (i.e. not...
In the audit of accounts receivable at XYZ company (the client), the gross amount (i.e. not including Allowance for doubtful debt) presented on the financial statement is $700,000 which includes customer A ($300,000) and company B ($400,000). The balance of Allowance for doubtful debt account is zero. You are the auditor and you are asked to check the accounts receivable account. Required: . What would you do if the client admitted the two errors in b) and c) but did...
1. When there is other information in documents containing audited financial statements and the auditor’s report,...
1. When there is other information in documents containing audited financial statements and the auditor’s report, the auditor should Group of answer choices Perform inquiry and analytical procedures to ascertain whether the other information is reasonable Perform the appropriate substantive auditing procedures to corroborate the other information Add an other-matter paragraph to the auditor’s report referencing the other information Read the other information to identify material inconsistencies, if any, with the audited financial statements 2. An auditor would express an...
1. Which of the following asset accounts is increased when a receivable is collected? Group of...
1. Which of the following asset accounts is increased when a receivable is collected? Group of answer choices Accounts Receivable Supplies Accounts Payable Cash 2. Computer Corporation is starting its computer programming business and has sold stock of $15,000.  Identify how the accounting equation will be affected. Group of answer choices increase in assets (Cash) and increase in liabilities (Accounts Payable) increase in assets (Cash) and increase in stockholders' equity (Common Stock) increase in assets (Accounts Receivable) and decrease in liabilities...
1. Owner invested personal funds into her business. The two accounts that would be affected are...
1. Owner invested personal funds into her business. The two accounts that would be affected are _______and _______ . Both accounts would be increased. 2. The business paid salary to workers for the week. The word paid tells us that    [ Select ] ["Cash", "Accounts Receivable", "Capital", "Accounts payable"] would [ Select ] ["Increase", "Decrease"] . The fact that the employees worked and we paid them tell us that the benefit of their work has been "used" up. This means...
Financial Statement Presentation | On December 31, San Guillermo's "Accounts receivable" balance per ledger of P1,250,000...
Financial Statement Presentation | On December 31, San Guillermo's "Accounts receivable" balance per ledger of P1,250,000 includes: 1. MasterCard or VISA credit card sale of merchandise to customer P10,000 2. Overpayment to supplier for inventory purchased on account 20,000 3. Insurance claim on automobile accident 2,000 4. Advance to sales manager due in one year 4,000 5. 5-vear note receivable due from company president (this was issued by the president for the loan granted to him.) 300,000 6. Interest due...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT