Solved

Match Seven of the Terms (A-K)with the Definitions Provided Below

Question 112

Matching

Match seven of the terms (a-k)with the definitions provided below (1-7):

Premises:

Responses:

a listing of the balances in the accounts receivable master file at the balance sheet date broken down according to the amount of time that has passed between the date of sale and the balance sheet date

negative confirmation

a letter,addressed to the debtor,requesting the recipient to fill in the amount of the accounts receivable balance.

invoice confirmation

the follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists

evidence planning worksheet

a letter,addressed to the debtor,requesting a response only if the recipient disagrees with the amount of the stated account balance

accounts receivable balance-related audit objectives

a reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement

blank confirmation form

a letter,addressed to the debtor,requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and,if incorrect,by what amount

positive confirmation

misstatements that take place as a result of current period transactions being recorded in a subsequent period or subsequent period transactions being recorded in the current period

aged trial balance

timing difference in an account receivable confirmation

cutoff misstatements

alternative procedures

realizable value of accounts receivable

Premises:

a letter,addressed to the debtor,requesting the recipient to fill in the amount of the accounts receivable balance.

the follow-up of a positive confirmation not returned by the debtor with the use of documentation evidence to determine whether the recorded receivable exists

a letter,addressed to the debtor,requesting a response only if the recipient disagrees with the amount of the stated account balance

a reported difference in a confirmation from a debtor that is determined to be a timing difference between the client's and debtor's records and therefore not a misstatement

a letter,addressed to the debtor,requesting that the recipient indicate directly on the letter whether the stated account balance is correct or incorrect and,if incorrect,by what amount

misstatements that take place as a result of current period transactions being recorded in a subsequent period or subsequent period transactions being recorded in the current period

Responses:

negative confirmation

invoice confirmation

evidence planning worksheet

accounts receivable balance-related audit objectives

blank confirmation form

positive confirmation

aged trial balance

timing difference in an account receivable confirmation

cutoff misstatements

alternative procedures

realizable value of accounts receivable

Correct Answer:

Premises:

Responses:

negative confirmation

invoice confirmation

evidence planning worksheet

accounts receivable balance-related audit objectives

blank confirmation form

positive confirmation

aged trial balance

timing difference in an account receivable confirmation

cutoff misstatements

alternative procedures

realizable value of accounts receivable