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: June 27, 2024
Included In Certifications
This course is included in the following Certification Programs:
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Prerequisites
Knowledge Level: Basic
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
courses@illumeo.com.

Jennifer LouisCPA, President of Emergent Solutions Group LLC