Accounts Receivable
Accounts Receivable
Chapter 16
2. Existence 6. Cutoff
4. Accuracy 8. Rights
Completeness
Classification
AUDIT OBJECTIVES
Detail tie-in
Realizable
Existence
Accuracy
Translation-related
Rights
Cutoff
value
audit objectives
Sales
Occurrence ×
Completeness ×
Accuracy ×
Posting and
summarization ×
Classification ×
Timing ×
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens//Elder/Beasley 16 - 7
Relationship Between Sales
and Accounts Receivable
ACCOUNTS RECEIVABLE
BALANCE-RELATED
Completeness
Classification
AUDIT OBJECTIVES
Detail tie-in
Realizable
Existence
Accuracy
Translation-related
Rights
Cutoff
value
audit objectives
Cash receipts
Occurrence ×
Completeness ×
Accuracy ×
Posting and
summarization ×
Classification ×
Timing ×
©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens//Elder/Beasley 16 - 8
Learning Objective 2
Design and perform analytical
procedures for accounts in the
sales and collection cycle.
Invoice confirmation
Negative confirmation