Discuss the Audit Procedures Performed When Testing the Detail Tie-In

question 127

Essay

Discuss the audit procedures performed when testing the detail tie-in objective for accounts receivable, and explain why this objective is ordinarily tested before any other objectives for accounts receivable.

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Definitions:

IASB

International Accounting Standards Board; the organization responsible for developing and publishing the International Financial Reporting Standards (IFRS).

FASB

The Financial Accounting Standards Board, an organization responsible for establishing financial accounting and reporting standards in the U.S.

Fair Value Measurement

An accounting standard for measuring the value of assets and liabilities based on the current market price.

GAAP Hierarchy

A framework within Generally Accepted Accounting Principles that ranks the authority of financial reporting guidelines and standards in the United States.