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

question 40

Essay

Assume you are working on a 12/31 year-end audit.It is now March 31^st 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.

Journalize various types of business transactions and understand the impact on the financial statements.

Understand the process and importance of recording financial transactions accurately.

Identify and correct errors that can cause a trial balance to not balance.

Explain the steps in the accounting cycle, including journalizing, posting, and preparing a trial balance.

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Definitions:

Meta Analysis

An analytical method that combines the results of multiple scientific studies to derive a more comprehensive understanding of a particular area or phenomenon.

Command-And-Control

Command-and-control refers to a traditional management style where decisions are made at the top and communicated down through the hierarchy.

Ethical Behavior

Conduct that is in accordance with accepted principles of right or wrong governing the behavior of individuals or groups.

Cross-Cultural Issues

pertain to the challenges and considerations that arise when individuals or groups from different cultural backgrounds interact.