Audit plan †Accounts Receivable and Notes Receivable Audit Procedures Essay

1. Obtain an aged trial balance of individual node accounts. Recalculate the total and follow to the general ledger control account.2. go over the aging for large and unusual items.3. Send stays to all accounts over $X. allot a random sample of all remaining accounts for confirmation. a.i.1.a.i.1.a. Investigate exceptions inform by customers. a.i.1.a.i.1.b. Perform alternative procedures on accounts that do not oppose to positive confirmation requests. a.i.1.a.i.1.b.i. vouch cash receipts after the confirmation date for subsequent payment. a.i.1.a.i.1.b.ii. Vouch sales invoices and shipping documents.4. Evaluate the sufficiency of the allowance for doubtful accounts. a. Vouch a sample of sure amounts in the aged trial balance to sales invoices to determine whether amounts aged current should be aged past due. b. Compare the current-year write-off experience to the prior-year allowance. c. Vouch cash receipts after the balance sheet date for collections on past-due accounts . d. Obtain financial statements or credit reports and discuss with the credit director collections on large past-due accounts. e. Calculate an allowance estimate using prior relations of write-offs and sales, taking under consideration current economic events. Notes receivable5. Review the bank confirmations, loan agreements, and minutes of the board for indications of pledged, discounted, or designate receivables.6. Inspect or obtain confirmation of notes receivable.7. Recalculate interest income and trace to the income account. 8. Obtain written client representations regarding pledge, discount, or assignment of receivables, and about receivables from officers, directors, affiliates, or other related parties. 9. Review the adequacy of control over written text of all charges to customers (completeness)-audited in the sales transactiontest of controls audit plan.