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The following are common tests of details of balances for the audit of accounts receivable:...

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Finance

The following are common tests of details of balances for the audit of accounts receivable:

1. Trace 35 accounts to the accounts receivable master file for name, amount, and age categories.

2. Examine and document cash receipts on accounts receivable for 20 days after the engagement date.

3. Request 25 positive and 65 negative confirmations of accounts receivable.

4. Perform alternative procedures on accounts not responding to second requests by examining subsequent cash receipts documentation and shipping reports or sales invoices.

5. Evaluate the materiality of credit balances in the aged trial balance.

For each audit procedure, identify the balance-related audit objective or objectives it partially or fully satisfies.

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