Chapter 16 - Chapter 16 Completing the Tests in the Sales...

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Chapter 16 Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
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Steps in completing tests Consider results of procedures to gain an understanding Consider results of tests of controls and substantive tests of details of transactions Calculate planned detection risk Design analytical procedures and substantive tests of details of balances
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Analytical Procedures Compare Gross margin with previous years Sales by month over time A/R turnover and days sales in A/R to prior years Bad debts exp as a percent of sales to prior years Aging analysis (% in each age group compared to previous years) Amounts written off compared to previous years
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Recession Accounts receivable turnover and days sales in A/R Why? To what assertion is this analytical procedure most relevant? What should the auditor do when this
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This note was uploaded on 02/09/2011 for the course ACCT 407 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.

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Chapter 16 - Chapter 16 Completing the Tests in the Sales...

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