Assume You Are Working on a 12/31 Year-End Audit

question 28

Essay

Assume you are working on a 12/31 year-end audit. It is now March 31ˢᵗ and the 12/31 accounts receivable aging shows a large receivable that was outstanding on 12/31 for 120 days. Further, the entity's receivables are typically collected in less than 45 days. You anticipate that the entity's allowance for doubtful account should be increased and inform the entity about your disposition. Management disagrees. Is there an alternative substantive procedure that you could perform that would provide convincing evidence that this balance is collectible? If so, explain.

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Definitions:

Declarative Selves

Aspects of an individual's self-concept that are consciously acknowledged and can be verbally communicated to others.

Procedural Selves

Conceptual frameworks relating to the aspect of self that is concerned with the processes of self-regulation and goal achievement.

Implicit Self

A component of self-concept that consists of unconscious and automatic self-references and attitudes that influence one's behavior and perceptions.

Self-schema

Cognitive structures that represent how we think about ourselves in different contexts, guiding our behavior and perceptions.