Auditing And Assurance Services
Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
Question
Book Icon
Chapter 16, Problem 25DQP

a.

To determine

Determine the balance related audit objective that might have a risk of material misstatement.

b.

To determine

Determine significant risk related to notes receivable.

c.

To determine

Determine the number of days receivables outstanding in the current year compare

to prior years’

d.

To determine

Do you plan to send notes receivable confirmations in the current year? Why or why not?

e.

To determine

To what extent will confirmations of notes receivable help you assess collectability of

the accounts as of yearend?

Blurred answer
Students have asked these similar questions
Adel & Co is a company manufacturing various types of mini bar refrigerators for hotels. The company does not have an internal control department. Below is the company’s sale and receivables system:i. Sales staff will carry out credit references checks for all new customers. ii. These references will be submitted to the finance department, where the finance manager will approve on accepting a new customer if the customer has a good credit rating. iii. Once this is completed, an appropriate credit limit is set for each customer by the financial controller.iv. Customers must use a standard sales order form when placing orders.v. Sales clerks will enter details of the sales order into the system which then check if the goods ordered are available and if the customer has sufficient credit limit available for this order. vi. All forms are pre numbered sequentially.vii. Prices for all products are stored in the system’s master file. viii. These details can only be amended by the…
Arcontica Classic Furniture (ACF) manufactures a range of rustic chairs, lawn furniture, and interior furnishing including lamps, desks, and bed frames. ACF's customer base comprises both private customers and retail outlets. Consumer's sales are for cash or by credit card, but business customers are for cash or by credit card, but business customers are extended a line of credit. New business customers undergo a credit check before receiving a credit line. All sales are made online, by fax or mailed in hard copy order. When a credit order is received, the sales clerk verifies inventory availability, prepares a sales order, and sends the stock release copy to the warehouse clerk who picks the goods and arranges shipment. He then prepares the bills of lading and sends copies of the shipping notices to the billing department and inventory control. The billing department updates the sales journal and sends an invoice to the customer. The clerk then sends the shipping notice to the AR…
RBCC ltd a local commercial bank that wants to venture into the credit card market. However, their research has shown that potential customers demand a fast turnaround time. In addition to its access to the external credit information agencies, the bank would like to design their own in-house credit scoring system. The bank will use a minimum score of 900 for its automatic credit card approval. The interest rate given to customers will range from 43% -49% with those achieving minimum score getting the highest rate, while those achieving a high score getting a more favorable rate.   Required   You have now been tasked with designing this credit scoring system based on the usual customer characteristics or variables that are evaluated when assessing a loan application for an individual or small business. Each characteristic or variable should be assigned a maximum score of 250. Your system should contain a minimum of five characteristics. Use an individual case, with a recommended…
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Text book image
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT