Give Three Examples of Where Auditors' Routine Audit Procedures Involve

question 19

Essay

Give three examples of where auditors' routine audit procedures involve periods after the year end date, excluding consideration of post balance sheet events.

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Definitions:

Bad Debt Expense

An estimated expense that represents the amount of receivables that a company does not expect to collect due to customers' inability to pay.

Credit Balance

This occurs when the total credits in an account exceed the total debits, often indicating money owed to a customer or client.

Adjusting Entry

An amended bookkeeping entry made to rectify or allocate transactions to the appropriate accounting period or ensure that revenues and expenses are recorded in the period they occur.

Doubtful Accounts

Accounts receivable that a company believes might not be collected due to credit risk.