ACCT 475 Lecture Notes - Lecture 24: Whistleblower, Cash Flow, Financial Statement

• School: McGill University
• Department: Accounting
• Course: ACCT 475
• Professor: Kevin Paul Parent

Document Summary

But could also be before year-end (earned but actually unearned before year end (revenue): unearned revenue is classified as a liability. Objective of test material accuracy of ,000 book value. Define population 14-page listing of advertising credits that contained the 1,100 supplier credits (sampling unit!!!!) Choose audit sampling techniques statistical vs. non-statistical: statistical = variables sampling. Select sample items: judgement call judgement call. Draw conclusions: validity of audit evidence of telephone confirmation. Document number i dialed, the time, the person you spoke to, etc. Tell them to return their confirmation in written form. Need a follow up of the signed off form. Can accept telephone confirmation under restrictive circumstances you control it and you have a follow up in written form: accounts receivables vs. accounts payable. Accounts receivables testing for existence so mainly large balances: expect, not required, to use confirmation, or the amount is not material do(cid:374)(cid:859)t ha(cid:448)e to use (cid:272)o(cid:374)fir(cid:373)atio(cid:374, you expect low response rate.