Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Substantive procedures for receivables
- This topic has 3 replies, 2 voices, and was last updated 5 years ago by reno2007.
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- July 2, 2018 at 11:01 am #460720
“Review a sample of post year-end credit notes to identify any that relate to pre-year-end transactions to verify that they have not been included in receivables.” May I know this SP is related to which assertion? Thank you.
July 2, 2018 at 11:31 am #460725@reno2007 said:
“Review a sample of post year-end credit notes to identify any that relate to pre-year-end transactions to verify that they have not been included in receivables.” May I know this SP is related to which assertion? Thank you.Is this related to “Completeness” and “Cut off”?
July 2, 2018 at 12:15 pm #460726Not completeness of receivables. It is to do with existence. If a sale is reversed after year end it didn’t really occur. A potential way to fraudulently increase sales is to process false invoices just before year then reversed by credit notes just after year end.
July 2, 2018 at 3:57 pm #460740@kengarrett said:
Not completeness of receivables. It is to do with existence. If a sale is reversed after year end it didn’t really occur. A potential way to fraudulently increase sales is to process false invoices just before year then reversed by credit notes just after year end.Thank you, Sir. Your reply has improved my understanding~
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