How to Audit Receivables

Audit receivables using a structured methodology that addresses valuation, existence, and collectability risks. This course explains the defining characteristics of receivables from an audit perspective and then walks through the procedures required to test account balances and related transactions. You will evaluate the allowance for doubtful accounts, review the accounting for notes receivable, assess receivable fraud risks, and examine key controls, integrating technical guidance into practical, well-documented audit work.
Format

PDF Course

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Duration

2 Hours

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Course Information

Author: Steven Bragg
Course Number: AU1010

Table of Contents
Chapter 1. Auditing Receivables
Chapter 2. The Allowance for Doubtful Accounts
Chapter 3. Accounting for Notes Receivable

Learning Objectives
  • Recognize the characteristics of notes receivable.
  • Specify the different types of related parties.
  • Cite the types of fraud related to receivables.
  • Describe the process of risk assessment used by an auditor.
  • Recognize when alternative audit procedures should be used.
  • Recognize the substantive procedures used in relation to receivables.
  • Describe the contents of a confirmation letter.
  • Specify the circumstances under which a negative confirmation could be used.
  • Recognize the contents of the allowance for doubtful accounts.
  • Specify the proper accounting for a note receivable.

Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Auditing
Prerequisites: None
Advance Preparation: None
Latest Review Date: September 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.