You are conducting an audit and have obtained the following figures with respect to sales and accounts receivable:
$$\begin{array} { l r r r }
& \mathbf { 2 0 1 5 } & \mathbf { 2 0 1 4 } \
\text { Accounts receivable } &\$ \mathbf { 3 } 343000 & \$ 2694000 \
\text { Allowance for doubtful accounts } & 212150 & 207660 \
\text { Sales } & 25640000 & 24630000
\end{array}$$
Required:
A) What are the audit implications of these figures?
B) Identify key audit steps that you would perform for any of the above accounts.

Question

You are conducting an audit and have obtained the following figures with respect to sales and accounts receivable:
 $$\begin{array} { l r r r } 
& \mathbf { 2 0 1 5 } & \mathbf { 2 0 1 4 } \
\text { Accounts receivable } &\$ \mathbf { 3 } 343000 & \$ 2694000 \
\text { Allowance for doubtful accounts } & 212150 & 207660 \
\text { Sales } & 25640000 & 24630000
\end{array}$$ 
Required: 
A) What are the audit implications of these figures?
B) Identify key audit steps that you would perform for any of the above accounts.

Quizplus · Accepted Answer

The Answer of You are conducting an audit and have obtained the following figures with respect to sales and accounts receivable:
 $$\begin{array} { l r r r } 
& \mathbf { 2 0 1 5 } & \mathbf { 2 0 1 4 } \
\text { Accounts receivable } &\$ \mathbf { 3 } 343000 & \$ 2694000 \
\text { Allowance for doubtful accounts } & 212150 & 207660 \
\text { Sales } & 25640000 & 24630000
\end{array}$$ 
Required: 
A) What are the audit implications of these figures?
B) Identify key audit steps that you would perform for any of the above accounts.

You Are Conducting an Audit and Have Obtained the Following