Describe how the auditor tests the rights objective for accounts receivable.

Describe how the auditor tests the rights objective for accounts receivable.

Answer:

The auditor can test the rights objective for accounts receivable through reviewing the client’s minutes, discussions with the client, confirmation with banks, and the examination of correspondence files to determine whether receivables may have been pledged as collateral, assigned to someone else, factored, or sold.

Comments

Popular posts from this blog

What is JAD and how are users involved? What are advantages and disadvantages of JAD?

What are the three dimensions to business problems? Give an example of each.

A laboratory assistant prepared solution of 0.8 M, 0.6 M, 0.4 M, and 0.2 M sucrose, but forgot to label them. After realizing the error, the assistant randomly labeled the flasks containing these four unknown solutions as flask A, flask B, flask C, and flask D.