Accounts receivable tend to carry a higher risk of material misstatement due to the complexity and subjectivity involved with initial recognition, subsequent measurement, and valuation. In addition, revenue recognition is presumed to be a significant fraud risk. This module will explain tips and best practice techniques for auditing common accounts receivable risks, primarily focusing on existence and valuation.

Major Topics:

  • Typical risks of material misstatement related to accounts receivable
  • Practice tailoring the detailed audit plan to the assessed risk of material misstatement
  • Overview of more complex issues, such as methods for converting accounts receivable to cash
  • External confirmation audit considerations, including evaluating responses for propriety
  • Evaluating the valuation of accounts receivable


Learning Objectives
  • Discover and discuss typical audit risks and special audit considerations related to accounts receivable.
  • Recognize and explain how to tailor a detailed audit plan to the assessed risk of material misstatement.
  • Identify and evaluate external confirmation responses for propriety.
  • Explore and evaluate allowance for doubtful accounts for proper valuation.
Last updated/reviewed: March 22, 2024

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
1 Review (10 ratings)


Anonymous Author
This was an interesting course that provided valuable insights into the Audit of Accounts Receivable.

Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants with responsibilities for auditing accounts receivable.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Learning Objectives for Auditing Accounts Receivable1:14
  Common Audit Program Steps20:44
  Converting Accounts Receivable to Cash5:50
  Notes Receivable4:58
  External Confirmation11:40
  Confirmation Case Study22:42
  Accounts Receivable Valuation12:02
  Accounts Receivable Valuation Cont'd11:40
  Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation1:42:28
  Slides: Auditing Accounts Receivable - Focusing Procedures for Testing Existence and ValuationPDF
  Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation Glossary/ IndexPDF