- This topic has 2 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Hi, I encountered some questions when I was practicing in BPP Revision Kit.
1. Describe the procudeures you would apply in verifying a receivables allowances consisting of a number of doubtful debts.
For this question, I was thinking of the procedures of verifying accounting estimates, such as: consider the reasonableness of accounting estimates, obtain written representation from management regarding assumptions used, adquacy of disclosures, etc. But the answer focuses on audit procedures of receivables, which I feel not so sure. Can you explain about that?2. For audit procedures, if I say for a sample of payables, agree journal to general ledger to ensure all transactions are recorded. Do I still need to point out “This will comfirm the assertion of completeness”? Because “to ensure blablabla” has already explained the reasons.
Thank you so much!
For the 2nd question, the answer is “yes, you should”. Even if your explaination perfectly indicates which assertion has been covered, examiner may not give you full mark because of you not writing it down. Writing that sentence would not take more than 5 seconds of your time anyway 🙂 So I would strongly recommend to write it down.
For the 1st question, can you be more specific? what procedure of receivables they have listed?
- You must be logged in to reply to this topic.