Accounts receivable tends to carry higher risk of material misstatement due to the complexity and subjectivity involved with recognition, measure and valuation. In addition, revenue recognition is presumed to be a significant fraud risk. This module will explain tips and techniques for auditing common accounts receivable risks.
Accountants with responsibilities for auditing accounts receivable
* Discuss typical audit risks and special audit considerations * Explain how to tailor a detailed audit plan to audit risk * Evaluate confirmation responses for propriety * Evaluate allowance for doubtful accounts for proper valuation
* Typical risks of material misstatement * Practice tailoring the detailed audit plan * Converting accounts receivable to cash * External confirmation audit considerations, including evaluating responses for propriety * Evaluating the valuation of accounts receivable