Create comprehensive audit programs for the Sales and Receivables So each audit program would include the following...

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Accounting

Create comprehensive audit programs for theSales and Receivables So each audit program wouldinclude the following components:
Audit steps for tests of controls,balances, transactions, analytical procedures, etc. as wellas other considerations such as sample size and samplemethodology.

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The engageemnt team should refer to the below audit plan to gain an understanding of the financial reporting system and the planned extent of testing for accounts receivable and sales Modification to the auditing procedures listed below may be necessary in order to achieve the audit objectives All audit work should be documented in the attached working papers with appropriate references noted in the right column below Audit Objectives Sales recorded are accurate complete and correct Sales are appropriately disclosed and presented in line with the requirement of GAAP Receivables at the closing date are for valid transactions and include all authentic obligations of third parties to the Company and its group Billings are for the correct amount and uncollectible accounts are promptly identified and provided for The allowance for uncollectible accounts is adequate Receivables are properly classified in the balance sheet between current and noncurrent assets and disclosures are adequate with respect to assigned pledged unbilled discounted and relatedparty receivables Financial Statement Assertions a Existence or occurrence b Rights and obligations c Completeness d Existence or occurrence e Valuation or allocation f Presentation and disclosure Audit procedures a Test of controls b Substantive audit procedures test of details c Analytical procedures Test of Controls a Understand the accounting system processes people and control around the sales and receivable process This includes the transaction process from intiation to recording stage b Select any 1 live transaction and perform walkthrough to understand whether process as understoor is appropriate and complete c Document the walkthtorughs procesures d Identify all the controls in the process and select key controls Key controls are those which affect the transaction materially and prevents eror frauds e Perform test of control for each size of population which homogenous f Samppes for testing shall be 25 and shall be selected only using the auditing sampling tool with inputs random stratified and monetrary units d documents the test of controls and identify the control weaknesses and conclude whether controls working appropriately Test of details 1 Perform Test of details for all the individual transactions above the materiality theresold 2 Additionally See Answer

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