What Procedures Should an Auditor Perform If He or She

question 16

Essay

What procedures should an auditor perform if he or she is auditing the financial statements of a company and finds out that the company has several clearing accounts?

---

Definitions:

Service Charge

Fees charged to customers for specific services or as penalties for not meeting certain criteria.

Note Receivable

A financial asset representing a promise to receive a definite amount of money at one or more specified future dates.

Interest Revenue

Income received from interest-bearing financial assets, such as bonds or savings accounts.

Loss on Sale

The negative financial difference between the sale price of an asset and its book value.