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:

Motion Sensor

A device that detects physical movement in a particular area and is often used in security systems, lighting controls, and interactive technologies.

Empirical Approach

An evidence-based method that draws on observation and experimentation.

Biopsychosocial Approach

A holistic perspective in psychology that suggests that biological, psychological, and social factors all play a significant role in human functioning in the context of disease or illness.

Critical Thinking

The goal of critically examining and assessing a matter to reach a conclusion.