1、receivable 20.2 7.4 18.813.9 16.5 Bad debt expense 3.3(2.9) 3.4 9.7 3.1 Total assets 61.4(7.0) 66.0 8.0 61.1 Net earnings 5.721.3 4.738.2 3.4 Number of accounts receivable 25816.7221 5.7209 12 - 142003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Analytical Proc
2、edures Sales and Collection Cycle 2002 20012000 Gross margin/net sales27.8%27.7%27.5% Sales R&A/gross sales .9% .9% .8% Bad debt expense/net sales 2.3% 2.6% 2.4% Allowance for uncollectible accounts/accounts receivable 6.1% 8.2% 8.4% Number of days receivables outstanding51.552.351.2 Net accounts re
3、ceivable/ current assets37.2%38.6%36.0% 12 - 152003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Design and Perform Tests of Details of A/R Balance (Phase III) Planned detection risk for each objective is an auditors decision. Combining the factors that determin
4、e planned detection risk is complex. 12 - 162003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Analytical Procedures for Gross Margin Gross Margin Percent 2002 2001 Client Industry Client Industry Hardwood36.332.436.432.5 Softwood23.922.020.322.1 Plywood40.350.14
5、4.254.3 12 - 172003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 3 Design and perform tests of details of balances for accounts receivable for each balance- related audit objective. 12 - 182003 Prentice Hall Business Publishing, Essentials of
6、Auditing 1/e, Arens/Elder/Beasley Designing Tests of Detail of Balances Aged trial balance Recorded accounts receivable exist Existing accounts receivable are included Accounts receivable are accurate Accounts receivable are properly classified 12 - 192003 Prentice Hall Business Publishing, Essentia
7、ls of Auditing 1/e, Arens/Elder/Beasley Designing Tests of Detail of Balances Cutoff for accounts receivable is correct Accounts receivable is stated at realizable value The client has rights to accounts receivable Accounts receivable presentation and disclosures are proper 12 - 202003 Prentice Hall
8、 Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Learning Objective 4 Obtain and evaluate accounts receivable confirmations. 12 - 212003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley AICPA Requirements 1. Accounts receivable are immaterial. 2
9、. The auditor considers confirmations ineffective evidence because response rates will likely be inadequate or unreliable. 3. The combined level of inherent risk and control risk is low and other substantive evidence can be accumulated to provide sufficient evidence. 12 - 222003 Prentice Hall Busine
10、ss Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Type of Confirmation Positive confirmation Blank confirmation form Invoice confirmation Negative confirmation 12 - 232003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Timing The most reliable evidenc
11、e from confirmations is obtained when they are sent as close to the balance sheet date as possible, as opposed to confirming the accounts several months before year-end. 12 - 242003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Sample Size Tolerable misstatement Inherent risk Control risk Achieved detection risk from other substantive tests Type of confirmation 12 - 252003 Prentice Hall Business Publishing, Ess
