Efficient Tests of Balances Series—No. 10: Minimizing Audit Procedures for Accounts Receivable
Similar to my discussion in a previous blog on cash auditing procedures, learning “how” to audit accounts receivable is mainly learning to “what extent” auditing procedures should be applied. The amount of audit work necessary depends on risk of material misstatement (RMM) evaluations at both the financial statement and classification (assertion) levels. For example, when RMM is low at the financial statement and assertions level for accounts receivable, substantive procedures may be…See More
