Describe the substantive procedures will carry out

Assignment Help Financial Accounting
Reference no: EM132659790

You are the audit senior working on audit of reef building supplies limited, a large supplier of building materials, for the year ended 30 June 2020. While completing your risk assessment for RBS, you know that the company appears to have a significant debt recovery problem. The majority of RBS's account receivable were outstanding for more then 60 days. RBS's provision for doubtful debts is calculated at 1% of accounts receivable at the month end. In the previous two financial years, RBS's wrote off $760000 and $105000 worth of accounts receivable, respectively. In those years sales were $7000000 and $11200000 respectively.

Problem 1: Describe the substantive procedures you will carry out at year end in order to obtain sufficient audit evidence regarding the assertions of valuation and existence in relation to accounts receivable ?

Reference no: EM132659790

Questions Cloud

Determine the interest income Chee should report : Chee purchases Tan, Inc. bonds for $108,000 on January 2, 2019. Determine the interest income Chee should report for 2019
What role does family play in preventing delinquent behavior : What role does family play in preventing delinquent behavior? Next, please research the concept of "Parens patriae." Does it apply today?
Disadvantages of movement leaders setting movements : What are the advantages and disadvantages of movement leaders setting movements goals higher than it is possible to achieve?
Calculate the realized and recognized gain or loss : Pam owns a personal use boat that has a fair market value of $35,000. Calculate the realized and recognized gain or loss
Describe the substantive procedures will carry out : Describe the substantive procedures you will carry out at year end in order to obtain sufficient audit evidence regarding the assertions of valuation
Discuss any ethical concerns that may relevant for methods : Ensuring inmate and staff safety is of the utmost importance in a correctional facility. Given the challenges prisons are faced with today, this is not an easy.
Solve the amount of factory overhead to be allocated : Solve the amount of factory overhead to be allocated to each unit using activity-based costing. The factory plans to produce 60,000 handbags
Social interaction and human connections : Do you believe digital media have changed social interaction and human connections?
What is Kareem realized gain or loss : If the buyer takes the property subject to the $80,000 mortgage rather than assuming it, what is Kareem's realized gain or loss

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd