Accounts receivable tends to carry 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 audit CPE course will explain tips and best practice techniques for auditing common accounts receivable risks, primarily focusing on existence and valuation. Participants of this auditing CPE will learn how to create an audit plan, as well as evaluate confirmation responses and allowance for doubtful accounts.
Learning Objectives
Upon completion of this course, participants will be able to:
Identify typical audit risks and special audit considerations related to accounts receivable
Explain how to tailor a detailed audit plan to assessed risk of material misstatement
Evaluate external confirmation responses for propriety
Evaluate allowance for doubtful accounts for proper valuation
