Page 38 - eBook Audit Of Financial Statement Components
P. 38
To achieve each of these specific audit objectives, the auditors
employ various parts of the audit planning and audit testing
methodology. The auditors’ objectives in the examination of
receivables and sales are:
1. To consider internal control over receivables and sales
transactions.
2. To determine the existence of receivables, the clients’
ownership of these assets, and the occurrence of sales
transactions.
3. To establish the completeness of receivables and sales
transactions.
4. To establish the clerical accuracy of records and
supporting schedules of receivables and sales.
5. To determine that the valuation of receivables is at
appropriate net realizable values.
6. To determine that the statement presentation of
receivables and sales is adequate.
“Receivables include amounts due from customers, employees, and affiliates on open
accounts, notes, and loans and accrued interest on such balances.”
31
