The following are common tests of details of balances or substantive analytical procedures for the audit of accounts receivable:
1- Select 20 customer accounts from the accounts receivable master file and trace to the aged accounts receivable listing to verify name and amount.
2- Select 20 customer accounts from the aged accounts receivable listing and trace to the accounts receivable master file for? name, amount, and aging categories.
3- Prepare a bar chart showing amounts and percentages of accounts receivable in cash aging category for the current and prior year and evaluate trends.
4- Obtain a list of aged accounts? receivable, foot and cross-foot the list, and trace the total to the general ledger.
5- Compute accounts receivable turnover for the current year and compare to the prior year.
6- Perform alternative procedures on accounts not responding to second requests by examining subsequent cash receipts documentation and shipping reports or sales invoices.
7- Request 50 positive confirmations of accounts receivable.
a) For each audit procedure, identify the balance-related audit objective or objectives it partially or fully satisfies.
b) In which order would the auditor perform the six? procedures? Briefly justify your answer.
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