Shipping documents describing the articles sold

Assignment Help Financial Accounting

Reference no: EM131202166

During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this customer's account. Comment on the relative reliability and adequacy of the following types of evidence:

a. Computer printout from accounts receivable subsidiary ledger.

b. Copies of sales invoices in amount of the receivable.

c. Purchase orders received from customer.

d. Shipping documents describing the articles sold.

e. Letter received by client from customer acknowledging the correctness of the receivable in the amount shown on client's accounting records.

f. Letter received by auditors directly from customer acknowledging the correctness of the amount shown as receivable on client's accounting records.

Reference no: EM131202166

Questions Cloud

Number of checks were allegedly forged on the account : Steven had a joint checking account with his mother at City National Bank of Florida. Between January and May 1990, a number of checks were allegedly forged on the account. Steven asked City National to re-credit the account for the amount of the che..

Conversion costs included in work in? process-assembly : ?Don’t Cry Over Spilled? Milk, Inc., a manufacturer of? mops, uses the weighted average method in its processing costing system.? Don’t Cry uses a traditional costing system in the allocation of its manufacturing overhead? (MOH) to? production; What ..

What is the consolidated net income : On January 1, 2015, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $370,000 in cash. The equipment had originally cost $350,000 but had a book value of only $265,000 when transferred. What is the consolidated net income for 2015..

Majority of the responsibility for operating the business : Auto Spa is a partnership with two partners, Sue Moore and Jim Pounds. Moore invested $104,650 and Pounds invested $56,350 of the $161,000 cash that was used to start the business. Pounds was expected to assume the vast majority of the responsibility..

Shipping documents describing the articles sold : During your examination of the accounts receivable of Hope Ranch, a new client, you notice that one account is much larger than the rest, and you therefore decide to examine the evidence supporting this customer's account. Computer printout from acco..

The auditors find serious weaknesses in the internal control : Assume that the auditors find serious weaknesses in the internal control of Oak Canyon, Inc., a producer and distributor of fine wines. Would these internal control weaknesses cause the auditors to rely more or less upon each of the following type of..

Discuss harmony right of garnishment against nettie : Harmony obtained a judgment against John and his company. At the time of the judgment, John lacked sufficient funds to pay. Just before Harmony obtained the judgment, John had transferred $126,000 to his mother, Nettie, who had signed a promissory n..

Developed schedule of future taxable and deductible amounts : Nadal Inc. has two temporary differences at the end of 2006. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxabl..

User Account

All Pages