Audit Objectives for Accounts Receivable A. Accounts receivable are authentic obligations owed to the company at the balance sheet date (assertions E/O, R/O, and V/A). B. Accounts receivable include all amounts owed to the company at the balance sheet date (assertion C). C. The allowance for doubtful accounts is adequate but not excessive. If the direct write-off method is used, all significant doubtful accounts have been written off, and the bad debt exposure in the remaining accounts is insignificant (assertions V/A and P/D). D. Pledged, discounted, or assigned accounts receivable are properly disclosed. Related party receivables are properly disclosed (assertions R/O and P/D). E. Accounts receivable are appropriately classified in the balance sheet, and required disclosures are made (assertion P/D).
For the complete audit program login to your premium subscription to download the workbook
All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published, broadcast, performed nor used to prepare derivative works, without the prior written permission of AuditNet®. You may not alter or remove any trademark, copyright, logo or other notice from copies of the content. For further information, see section 1 of the Terms and Conditions and section 2 of the Subscriber Access Agreement.