132CHAPTER 11

132CHAPTER 11 - Accounts Receivable, Notes Receivable, and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Bob Anderson, UCSB CHAPTER 11-1 11 CHAPTER Accounts Receivable, Notes Receivable, and Revenue Bob Anderson, UCSB Intro & Chapter 11-2 TESTING ACCOUNTS RECEIVABLE When testing accounts receivable, we are also testing? INCOME STMT: SALES and bad debt expense BALANCE SHEET: Allowance for doubtful accts Therefore in MANY businesses, testing receivables is a critical test of the company’s operating activities. Bob Anderson, UCSB Intro & Chapter 11-3 Management Assertions When auditors test accounts receibable, what management assertion/s are they MOST interested in? Valuation- did they record enough bad debt expense Existence/ Cutoff- are these valid (NOW/ timing/ revenue recogn.) What about the others: Completeness Not as concerned, but there might be some cut-off issues to consider. Rights and Obligations Are these related to sham transactions, sale lease-back, etc. Presentation & Disclosure Have the receivables been pledged? Do they secure something?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

132CHAPTER 11 - Accounts Receivable, Notes Receivable, and...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online