Question

Audit and Investigation work. Can you please assist me.Thank you

B- ASSERTIONS AND AUDIT OBJECTIVES:
The following are specific balance related audit objective applied to the audit of accounts receivable (a
thu h) and management assertions about account balances (1 thu 4) The list referred to in the specific
balance related audit objectives is the list of the accounts receivable from each customer at the balance
sheet date.

Specific Balance Related Audit Objective
a) There are no unrecorded receivables
b) Receivables have not been sold or discounted
c) Uncollectible accounts have been provided for
d) Receivables that have become uncollectible have been written off
e) All accounts on the list are expected to be collected within one year
f) The total of the amounts on the accounts receivable listing agrees with the general ledger
balance for accounts receivable
g) All accounts on the list arose from the normal course of business and are not due from related
parties
h) Sales cutoff at year end is proper

MANAGEMENT ASSERTION ABOUT ACCOUNT BALANCES
1. Existence
2. Completeness
3. Valuation and allocation
4. Rights and obligations
For each specific balance related audit objective, identify the appropriate management assertion

BALANCE RELATED AUDIT OBJECTIVES
1. EXISTENCE
2. COMPLETENESS
3. ACCURACY
4. CLASSIFICATION
5. CUTOFF
6. DETAIL TIE IN
7. REALIZAGLE VALUE
8. RIGHTS AND OBLIGATIONS

TRANSACTION-RELATED AUDIT OBJECTIVE
9. OCCURRENCE
10. COMPLETENESS
11. ACCURACY
12. CLASSIFICATION
13. TIMING
14. POSTING AND SUMMARIZATION

PRESENTATIONA AND DISCLOSURE AUDIT OBJECTIVE
15. OCCURRENCE AND RIGHTS
16. COMPLETENESS
17. ACCURACY AND VALUATION
18. CLASSIFICATION AND UNDERSTANDABILITY

C- Identify the specific audit objective (1 thru 18) that each of the following specific audit
procedures below satisfies in the audit of sales, accounts receivable, and cash receipts for fiscal
year ended December 31, 2016

a) Examine a sample of duplicate sales invoices to determine whether each one has a shipping
document attached
b) Add all customer balances in the accounts receivable trial balance and agree the amount to
the general ledger
c) For a sample of sales transactions selected from the sales journal, verify that the amount of
the transaction has been recorded in the correct customer account in the accounts
receivable subledger
d) Inquire of the client whether any accounts receivable balances have been pledged as
collateral on long term debt and determine whether all required information is included in
the footnote description for long term debt
e) For a sample of shipping documents selected from shipping records, trace each shipping
document to a transaction recorded in the sales journal
f) Discuss with credit department personnel the likelihood of collection of all accounts as of
December 31, 2016 with a balance greater than $ 100,000 and greater than 90 days old as
of year end

Answer 1

a) Occurence

b) Detail Tie in

c) Posting and summarization

d) Occurrence and rights

e) Completeness

f) Realizable value