审计学（英文）_15 COMPLETING THE TESTS IN THE SALES AND COLLECTION CYCLE: ACCOUNTS RECEIVABLE

COMPLETING THE TESTS IN THE SALES AND COLLECTION CYCLE ACCOUNTS RECEIVABLE When more sn’ t better Arens. Loebbecke; Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. 15 When More Isn’t Better COMPLETING THE TESTS IN THE SALES AND COLLECTION CYCLE: ACCOUNTS RECEIVABLE

METHODOLOGY FOR DESIGNING TESTS OF DETAILS OF BALANCES In designing tests of details of balances for accounts receivable, it is essential to satisfy each of the nine balances-related audit objectives first discussed in Chapter 6. 飞1. Detail tie-in 2. Existence 飞3. Completeness 4. Accuracy 5. Classification 6. Cutoff 7. Realizable value 8. Rights 9. Presentation Arens, Loebbecke; Auditing, &/E and disclosure @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. METHODOLOGY FOR DESIGNING TESTS OF DETAILS OF BALANCES In designing tests of details of balances for accounts receivable, it is essential to satisfy each of the nine balances-related audit objectives first discussed in Chapter 6.         1. Detail tie-in 2. Existence 3. Completeness 4. Accuracy 5. Classification 6. Cutoff 7. Realizable value 8. Rights 9. Presentation and disclosure

Phase Set tolerable misstatement and assess inherent risk for accounts receivable A Assess control risk for sales and collection cvcle Arens, Loebbecke; Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc.  Phase I  Set tolerable misstatement and assess inherent risk for accounts receivable  Assess control risk for sales and collection cycle

Phase i Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle Arens, Loebbecke; Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc.  Phase II  Design and perform tests of controls and substantive tests of transactions for the sales and collection cycle

Phase nil A Design and perform analytical procedures for accounts receivable balance Design tests of Audit procedures details of accounts Sample size receivable balance to satisfy balance tems to select related audit objectives ImIng Arens. Loebbecke; Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc.  Phase III  Design and perform analytical procedures for accounts receivable balance  Design tests of details of accounts receivable balance to satisfy balance￾related audit objectives Audit procedures Sample size Items to select Timing

Designing Tests of Details of Balances Aged Trial balance Recorded accounts receivable exist Existing accounts Receivable are Included Accounts receivable are accurate Accounts Receivable are Properly Classified Cutoff for Accounts Receivable Is Correct Accounts receivable is stated at realizable value Accounts Receivable Presentation and Disclosures Are Proper Arens, Loebbecke; Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Aged Trial Balance Recorded Accounts Receivable Exist Existing Accounts Receivable Are Included Accounts Receivable Are Accurate Accounts Receivable Are Properly Classified Cutoff for Accounts Receivable Is Correct Accounts Receivable Is Stated at Realizable Value Accounts Receivable Presentation and Disclosures Are Proper

Confirmation of Accounts receivable AICPA Requirements 1. Accounts receivable are immaterial 2. The auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable 3. The combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence. Arens. Loebbecke; Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Confirmation of Accounts Receivable AICPA Requirements 1. Accounts receivable are immaterial. 2. The auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable. 3. The combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence

misstatement risk for accounts FIGURE 15-1 receivable Assess control risk for Phase I d collection cycle Design and perform METHODOLOGY FOR tests of controls and substantive tests DESIGNING TESTS OF of transactions Phase ll DETAILS OF BALANCE for the sales and n cycle FORACCOUNTS RECEIVABLE perform analytical procedures for ase ble balance Audit details of accounts receivable balance Sample size Phase lll Items to select Arens. Loebbecke; Auditing, 8/E audit objectives Timing @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 15 - 1 METHODOLOGY FOR DESIGNING TESTs OF DETAILS OF BALANCE FOR ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE BALANCE-RELATED FIGURE 15-2 AUDIT OBJECTIVES TRANSACTION- RELATED g CLASS OF AUDIT TRANSACTIONS OBJECTIVES g|3 03 Sale Existence Relationship between Completeness Transaction-Related Accurac Audit Objectives for the Classification Sales and collection Cvcle and balance- TimIng Related audit Objectives X for accounts receivable and summarization Cash Existenc Completeness Classification TiT Posting Arens. Loebbecke; Auditing, 8/E and summarization @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 15 -2 Relationship between Transaction-Related Audit Objectives for the Sales and Collection Cycle and Balance￾Related Audit Objectives for Accounts receivable

Confirmation Decisions A Types of Confirmation \ Positive confirmation Blank confirmation form \Invoice confirmation A Negative confirmation Arens. Loebbecke; Auditing, 8/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Confirmation Decisions Types of Confirmation Positive confirmation Blank confirmation form Invoice confirmation Negative confirmation