How do you audit accounts recieveable

Question

Accepted Answer

Auditing accounts receivable involves verifying the accuracy and completeness of recorded receivables.

Reviewing the accounts receivable ledger and comparing it to supporting documentation
Confirming the balances with customers through direct communication or third-party confirmations
Testing the valuation of receivables by assessing the adequacy of allowances for doubtful accounts
Examining the aging of receivables to identify any potential collection issues
Checking for proper revenue recognition and adherence to accounting policies
Assessing the effectiveness of internal controls over accounts receivable
Performing analytical procedures to identify any unusual trends or fluctuations
Documenting audit procedures performed and any identified issues or exceptions

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