To: Doctor Brooks
Via: Team three or more
Date: Sept 24, 2014
Objective: ACL Accounts Receivable
The purpose of this situatio was to develop an examine program through the use of ACL audit software, and identify the significance of virtually any findings or perhaps audit differences. First, all of us footed the file to the general ledger. Next, we checked intended for duplicate invoices to ensure that we all did not take into account the account receivable over and over again. We after that proceeded to develop an maturing schedule to find unpaid accounts over 45 days. Additionally , we discovered customer balances that were higher than their credit limit of n/45, or for which there were not any credit restrictions. This led us to our next step, exactly where we performed a revenue cutoff test out that determined Shipments above 261, 337. Next, we all considered consumers were credit rating balances and determined if there was a need for reclassification. We came to the conclusion our plan by selecting a PPS (monetary) sample of unpaid bills to confirm outcomes. Throughout this method we applied a materiality of 500 usd, 000 intended for accounts receivable. Findings:
Following Procedure you, we uncovered 402 information that have a net value of $21, 567, 378. 01 that agrees with each of our client's financial statement details. Procedure 2 located one set of duplicates found in the outstanding file, that was invoice 167, 189 intended for $28, 003. 57, and also in the send info data file with disagreeing shipping quantities. We recognized 16 bills for a total amount of $734, 515. 27 that is certainly over 45 days outdated during Method 3. Following, we identified seven buyer balances which can be greater than all their credit limitations by a great alarming $32, 363. 72. After carrying out our cutoff testing during procedure five, we located one cut-off error for $29. 256. 67 that was not shipped until 08. Fortunately Treatment 6 turned out that there are zero customer accounts that have credit balances that need to be considered pertaining to reclassification. In conclusion, we have learned the total of misstatements every the entire human population as follows: certainly not...