Confirmations of Receivables at an Interim Date When Internal Controls

question 62

Essay

Confirmations of receivables at an interim date When internal controls are strong,the auditor may decide to confirm receivables before year end.Roll-forward procedures are then used to obtain adequate evidence for the roll-forward period.Discuss why the auditor would want to confirm receivables before balance sheet date,the risks involved,and at least three of the roll-forward procedures that the auditor performs to gain assurance on the roll-forward period.

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Definitions:

Formal Performance

The evaluation of an employee's work based on established criteria and procedures within a professional setting.

Confidential

Information or documents that are private, meant to be kept secret, and not disclosed to unauthorized individuals.

High Self-monitoring

A personality trait characterized by a high level of sensitivity to social cues and adaptability in behavior depending on the situation.

Emotional Stability

A personality trait characterized by the ability to remain calm, composed, and steady, especially under stress or during challenging situations.