You are auditing the accounts receivable for Conor Company as of December 31, 2022 One of your procedures was to send positive confirmations to a sample of 50 accounts. Of those 50 confirmations, 40 have been positively confirmed without comments, 7 had minor differences that have been cleared satisfactorily. The remaining 3 had the following comments: “We received $6,000 of goods on consignment on November 20, 2022. We have not sold them yet.”“We received these goods on January 5, 2023 and mailed a check on January 7, 2023.”“The balance of $2,000 was paid on December 10, 2022.” For each of these comments, identify the steps that you would take to clear (resolve) them.

Introduction:- This question presents a scenario where you are auditing the accounts receivable for…

Answered: You are auditing the accounts…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter14: Completing A Quality Audit

Section: Chapter Questions

Problem 4RQSC

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You are auditing the accounts receivable for Conor Company as of December 31, 2022 One of your procedures was to send positive confirmations to a sample of 50 accounts. Of those 50 confirmations, 40 have been positively confirmed without comments, 7 had minor differences that have been cleared satisfactorily. The remaining 3 had the following comments:

“We received $6,000 of goods on consignment on November 20, 2022. We have not sold them yet.”
“We received these goods on January 5, 2023 and mailed a check on January 7, 2023.”
“The balance of $2,000 was paid on December 10, 2022.”

For each of these comments, identify the steps that you would take to clear (resolve) them.

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