Audit 203: Auditing Accounts Receivable - Common Risks

Overview

Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation will explain tips and best practice techniques for auditing common accounts receivable risks, primarily focusing on existence and valuation. Accounts receivable tends to carry higher risk of material misstatement due to the complexity and subjectivity involved with initial recognition, subsequent measurement, and valuation. In addition, revenue recognition is presumed to be a significant fraud risk. Note: This course is recommended as a part of a 16-hour audit skills curriculum for experienced staff auditors, while it is also appropriate for anyone who has responsibilities for auditing accounts receivable. This event may be a rebroadcast of a live event and the instructor will be available to answer your questions during the event.

Prerequisites

None

Objectives

Upon completion of this course, you will be able to...

• Identify typical audit risks and special audit considerations related to accounts receivable
• Recall how to tailor a detailed audit plan to assessed risk of material misstatement
• Evaluate external confirmation responses for propriety
• Evaluate allowance for doubtful accounts for proper valuation

Highlights

The major topics covered in this course include:

• Typical risks of material misstatement related to accounts receivable
• Practice tailoring the detailed audit plan to the assessed risk of material misstatement
• Overview of more complex issues, such as methods for converting accounts receivable to cash
• External confirmation audit considerations, including evaluating responses for propriety
• Evaluating the valuation of accounts receivable