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Auditing

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The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Questions: a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. (3 marks) b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15,000. (4 marks) ID Pageview A Read aloud Chapter 10 0 16:29 Objectives 162, 163) The Albring Company sells electronics equipment, and has strown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31. 2011. Comparative information on sales and accounts receivable is included belowi Year Ended Year Ended */**/ 12/31/10 Sales 5 12,160,626 $10.452,513 Accounts Receivable 1.400.30 T4 M, 95% Allowance for doubtful accounts 90,000 75.000 Bad debt charge offe 103.471 Accounts Receivable 0-50 days 5 097,035 5 695,041 30-60 days 254.260 160,009 Go daye 171,846 10.99 Over 30 days 112231 6,906 TOTAL $ 410, 11 50,93 a. Identify what tests of controls and substantive tests of transaction you recommend be performed before conducting your analysis of the allowance for doubtful accounts b. Perform analytical procedures to evaluate whether the allowance in fairly wated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15.00 16:30 Objective - You have been assigned to the confirmation of aged account: receivable for the Blank Paper Company audit. You have tested the apped trial balance and Selected the account for confirming Hefore the confirmation requests are mailed, the controller aslo to look at the accounts you intend to confirm to determine whether he will Hequired Done Assignment Instructions (Summer 1 2021)_8bf9b736f62983540d3c205a2e4cbb59 16-29 (Objectives 16-2, 16-3) The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Year Ended Year Ended 12/31/11 12/31/10 Sales $ 12,169,876 $ 10,452,513 Accounts Receivable 1,440,381 1,030,935 Allowance for doubtful accounts 90,000 75,000 Bad debt charge offs 114,849 103,471 Accounts Receivable: 0-30 days $ 897,035 $ 695,041 30-60 days 254,269 160,989 60-90 days 171,846 105,997 Over 90 days 117.231 68,906 TOTAL $ 1,440,381 $ 1,030,933 a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15.000 V. ired auditing Done Assignment Instructions (Summer 1 2021)_8bf9b736F62983540d3c205a2e4cbb59 rmation on sales and accounts receivable is included below: Year Ended Year Ended 12/31/11 12/31/10 Sales 5 12,162,076 $ 10,452,513 Accounts Receivable 1.440,01 1.030,935 Allowance for doubtful accounts 90,000 75.000 Bad debt charge-ofts 114,549 105,471 Accounts Receivablet 0-30 days 5 397,035 5695.041 30-60 days 254.269 160,90 60-90 days 171.340 105.99 Over 50 days 117.231 63.906 TOTAL $ 1.440,301 $ 1.030.933 Identify what tests of controls and substantive tests of transactions you recommed performed before conducting your analysis of the allowance for doubtful account Perform analytical procedures to evaluate whether the allowance is fairly state December 31, 2011. Assume tolerable misstatement for the allowance accou $15.000 The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Questions: a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. (3 marks) b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15,000.(4 marks) The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Questions: a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. (3 marks) b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15,000. (4 marks) ID Pageview A Read aloud Chapter 10 0 16:29 Objectives 162, 163) The Albring Company sells electronics equipment, and has strown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31. 2011. Comparative information on sales and accounts receivable is included belowi Year Ended Year Ended */**/ 12/31/10 Sales 5 12,160,626 $10.452,513 Accounts Receivable 1.400.30 T4 M, 95% Allowance for doubtful accounts 90,000 75.000 Bad debt charge offe 103.471 Accounts Receivable 0-50 days 5 097,035 5 695,041 30-60 days 254.260 160,009 Go daye 171,846 10.99 Over 30 days 112231 6,906 TOTAL $ 410, 11 50,93 a. Identify what tests of controls and substantive tests of transaction you recommend be performed before conducting your analysis of the allowance for doubtful accounts b. Perform analytical procedures to evaluate whether the allowance in fairly wated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15.00 16:30 Objective - You have been assigned to the confirmation of aged account: receivable for the Blank Paper Company audit. You have tested the apped trial balance and Selected the account for confirming Hefore the confirmation requests are mailed, the controller aslo to look at the accounts you intend to confirm to determine whether he will Hequired Done Assignment Instructions (Summer 1 2021)_8bf9b736f62983540d3c205a2e4cbb59 16-29 (Objectives 16-2, 16-3) The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Year Ended Year Ended 12/31/11 12/31/10 Sales $ 12,169,876 $ 10,452,513 Accounts Receivable 1,440,381 1,030,935 Allowance for doubtful accounts 90,000 75,000 Bad debt charge offs 114,849 103,471 Accounts Receivable: 0-30 days $ 897,035 $ 695,041 30-60 days 254,269 160,989 60-90 days 171,846 105,997 Over 90 days 117.231 68,906 TOTAL $ 1,440,381 $ 1,030,933 a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15.000 V. ired auditing Done Assignment Instructions (Summer 1 2021)_8bf9b736F62983540d3c205a2e4cbb59 rmation on sales and accounts receivable is included below: Year Ended Year Ended 12/31/11 12/31/10 Sales 5 12,162,076 $ 10,452,513 Accounts Receivable 1.440,01 1.030,935 Allowance for doubtful accounts 90,000 75.000 Bad debt charge-ofts 114,549 105,471 Accounts Receivablet 0-30 days 5 397,035 5695.041 30-60 days 254.269 160,90 60-90 days 171.340 105.99 Over 50 days 117.231 63.906 TOTAL $ 1.440,301 $ 1.030.933 Identify what tests of controls and substantive tests of transactions you recommed performed before conducting your analysis of the allowance for doubtful account Perform analytical procedures to evaluate whether the allowance is fairly state December 31, 2011. Assume tolerable misstatement for the allowance accou $15.000 The Albring Company sells electronics equipment, and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2011. Comparative information on sales and accounts receivable is included below: Questions: a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. (3 marks) b. Perform analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2011. Assume tolerable misstatement for the allowance account is $15,000.(4 marks)

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