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 discuss the risks associated with accounts receivable and the allowance for doubtful accounts as well as techniques for auditing those areas. (Please Note: This module is part of Surgent's Audit Skills Training: Level 2.)
DESIGNED FOR
Accountants with responsibilities for auditing accounts receivable
BENEFITS
• Identify audit risks and special audit considerations
• Tailor a detailed audit plan for accounts receivable based on the assessed risk
• Evaluate confirmation responses and identify areas for follow-up
• Evaluate and conclude on the valuation for the allowance for doubtful accounts
HIGHLIGHTS
• Risks of material misstatement associated with auditing accounts receivable
• Internal controls associated with accounts receivable
• Substantive procedures used in auditing accounts receivable
• External confirmation audit considerations, including evaluating responses for propriety
• Evaluating the valuation of accounts receivable
• The AICPA’s new SAS on auditing estimates
PREREQUISITES
None