COMM 455 Lecture Notes - Lecture 15: Cheque, Accounts Receivable
Document Summary
Figure 9. 2 partial audit program for tests of controls credit sales. Test of control/transactions looking at what we do and why. Who prepared, reviewed by occurrence, cut-off most important in sales. 1029 trace to sales invoice, processed, a/r processed, inventory in 2015. Who is handling cash: accounting to bank if both incorrect, then it will still agree. Obtain results of our control testing did results confirm our initial assessment: if yes, we should do limited substantive work, if no, expand/amend our substantive audit procedures. Audit program (substantive tests) should address assertions for account balances. Computer: greater than xxx amount identify them. Wants to increase cash and decrease receivable before y/e. Not completeness; client signs what was sent to them, not what they owe. Returned to jan 2 credit note issued at jan, but at dec they owed 10,000. Item returned, but they didn"t record the return error. Cheque still in the mail still owe 7000.
