ABBA COMPANY AUDIT PROGRAM FOR ACCOUNT RECEIVABLE.

Audit Objectives Occurance ( no fictitious account receivables) Error Generalized Audit Evidence Unauthrized sales Examine and match may have been sales figure with occured source documents. Computation of sales and account receivables amounts and ratio analysis. Goods and sales Examine shipping many have been notices and bill of shipped but not billed lading and with and billed but account receivables shipped respectively figures Sales may have been Using analytical recorded in the prosedure and wrong accounting comparing sales and period accounts receivables figures with previous years. Make a comparison of source documents with master file. Sales may be Recalculate and incorrectly recorded compare receivable amount with sales figure. Wrong account Review account posting of sales receivable figures. might have happened. Transaction Substantive Test Account for a sequence of sales invoice. Trace sales journal to supporting documents. Trace the inclusion of shipping and bills to the sales journal

Completeness (no omittion of trade debtors)

Rights and Obligations (the non existance of fraud over receivables claims)

Foot and cross-foot the sales journal and trace totals to the general ledger. Test for amount and date on receibales and sales invoices.

Allocation (normal business operation receivables collection) Presentation and disclosure( disclose receivables from directors and used as collateral)

Entries tracing in sales journal and sales invoices. Examine sales invoices for proper classification

REFERENCE: Gupta K.(2005) Contemporary Auditing, 6th ed. McGrwa-Hill company ltd. India