Respuesta :
An auditor should perform alternative procedures to substantiate the existence of accounts receivable when no reply to a positive confirmation request is received.
What procedure you would perform to test the existence of receivables?
The primary test that can be performed is to obtain the aged trial balance of receivables and trace the total balance to the general ledger. This provides the auditor comfort that all outstanding receivables are included in the financial statements.
How to Audit Accounts Receivable
- Trace receivable report to general ledger.
- Calculate the receivable report total.
- Investigate reconciling items.
- Test invoices listed in receivable report.
- Match invoices to shipping log.
- Confirm accounts receivable.
- Review cash receipts.
- Assess the allowance for doubtful accounts.
When Should auditors not perform alternative procedures?
- Auditors must maintain control of confirmations until they are returned from the customer.
- When a customer does not return an accounts receivable confirmation, it is acceptable, without performing alternative procedures, to assume the amount is 100% overstated when generalizing from the sample to the population.
Learn more about Audit Accounts Receivable
brainly.com/question/13740837
#SPJ4
