Match the substantive audit procedure to the assertion being tested. (More than one procedure can be used to test the same assertion.) The procedures all relate to the sales cycle.
PROCEEDURE
A. Select a sample of invoices issued during the last 5 days of the year and agree that the invoices to the packing slips as to date, description, and quantity.
B. Review the accounts receivable aging re[port and discuss balances over 90 days past due with the accounting manager.
C . Review loan agreements to determine whether receivables are pledged as security.
D. Obtain a listing of revenues (by customer) for the year. Determine whether sales to any customers represent more that %5 of total sales for the year.
ASSERTIONS
1. Existence/Occurrence
2. Completeness
3. Valuation
4 . Presentation/Disclosure
5. Rights/Obligations
