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You are the audit manager in charge of auditing the accounts of Jamieson Ltd. Materiality for the audit has been set at $250,000. The balance date was 30 June 2020. It is the 18 of August 2020 and you are at the client's premises to undertake the audit. The pre-audited balance of accounts receivable for Jamieson Ltd at 30 June 2020 is $925,000. The audited balance of accounts receivable as at 30 June 2019 was $555,000.
Problem a) Identify and explain which assertion(s) related to accounts receivable is/are most likely to be at the greatest risk of material misstatement.
Problem b) Suggest substantive procedures to verify the assertion(s) you identified in part a and explain why the tests are appropriate in this scenario.
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