Reference no: EM132592913

ABC Ltd. is a distributor of ski equipment. The company s records include sales and purchase orders, purchasing invoices, a sales journal, a purchase journal, and subledgers for both payables and receivables. There is a Canadian and a U.S. bank account.

• All customers have a pre-determined credit limit that is noted in their files. If a customer s order exceeds the authorized credit limit manager must approve the sale; otherwise, the sales clerk enters and approves the order for processing.

• The allowance for doubtful accounts shows that $75000 worth of receivables are greater than 90 days past due. there are no past due accounts payable. Company have 4 suppliers. An allowance for doubtful accounts is prepared by management and done on a case by case basis based on payment history and management judgement.

• Accounting department receives a report each day of goods shipped and purchased goods received. All shipments are invoiced within one day of shipment.

• All liabilities are paid within 30 days. An accrual listing is prepared from unmatched receiving reports each month.

REQUIRED

Question 1: Write 4 Complete substantive procedures for ABC company. For each audit procedure, be clear in the type of procedure e.g. tracing, vouching, observing, scanning, and so on and state the related key management assertion.