AICPA's Audit Staff Essentials, Level II – Experienced Staff
This comprehensive, integrated curriculum provides audit training for three different experience levels – New Staff (Level I), Experienced Staff (Level II); and Audit Senior/In-Charge (Level III).
This course is part of Audit Staff Training, Level II – Experienced Staff, which covers key areas to provide a strong set of skills necessary to grow the abilities and confidence of junior and senior level staff, allowing them to work through additional areas more independently.
The two riskiest elements of accounts receivable are the allowance for doubtful accounts and proper cut-off. Because the balance is an estimate and highly subjective, the allowance for doubtful accounts usually is the area of accounts receivable most susceptible to material misstatement. Some clients have difficulty achieving a good cut-off at year-end, and any cut-off errors directly impact revenues.
You want to gain comfort that the client has included all the receivables and sales earned in the current period. At the same time, be alert for bogus sales and the improper acceleration of revenue recognition.
Through an interactive, comprehensive case study, you will learn how to effectively and efficiently audit accounts receivable and the allowance for doubtful accounts. You'll explore the importance of testing the accounts receivable aging and how to use subsequent cash collections to increase efficiency.
- Confirmation procedures
- Effective confirmation design
- Sampling requirements and general procedures
- Using analytical procedures
- Aging of accounts receivable and the allowance for doubtful accounts
- Match the audit procedures typically performed in the accounts receivable area to the stated audit objectives.
- Effectively review the accounting systems and internal control over sales transactions and identify deficiencies and possible solutions.
- Properly perform a confirmation of accounts receivable, including performing alternative procedures for non-responses.
- Audit the allowance for doubtful accounts.
Prerequisite: 6-24 months experience
Advanced Preparation: None