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“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.
@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”?
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.
@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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