Basic Staff Training: Auditing Accounts Receivable

Author: Robert K Minniti

Are you a staff accountant planning on performing an audit on accounts receivable (A/R)? Whether you are a new auditor or just need a refresher on this topic this course is for you. We will review steps for planning an A/R audit, testing internal controls over A/R, conducting analytical procedures and performing substantive testing. From an audit procedure standpoint this course will also focus on the techniques and documentation needs that a staff accountant needs to know. In addition, the course will offer practical advice to the staff accountant on conducting an audit of accounts receivable.

Publication Date: January 2023

Topics Covered

• Accounts Receivable: Planning the Audit
• Sampling
• Accounts Receivable: Conducting Field Work

Learning Objectives

• Identify audit procedures for auditing accounts receivable
• Recognize what would be least likely to impair an auditor's independence
• Recognize what starts with the transaction record and verifies there is a corresponding source document
• Identify what an auditor would expect when applying Benford's Law
• Describe substantive test
• Recognize common workpapers for an external audit of accounts payable
• Identify the materiality threshold for fraud
• Describe which type of sampling gives all items an equal chance of being selected
• Identify the correct formula for the audit risk model
• Recognize what would be part of an audit trail review
• Describe red flags for accounts payable fraud
• Identify how an auditor would normally test for cashed checks
• Recognize how the effectiveness of internal controls are evaluated
• Identify examples of calculating the accounts payable turnover ratio

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None