ACC 546 - Week 5 - 15799

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Learning team assignment: Audit Program Design Part 2

 

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Week five

 

Learning team assignment: Audit Program Design Part 2

 

 

 

Sales and collection cycle

 

The analytical procedures are applied for assessing the reasonableness of the amounts stated in current year’s financial statements. The analytical review for Apollo Shoes would involve calculating the collection period for trade receivables and comparing it with last year figure. Another form of analytical procedure includes calculating expense of bad debts as a percentage of sales and then comparing it with last year. The allowance for bad debts can also be calculated as a percentage of year end receivables and compared with last year.

 

The control tests are carried out in order to check whether control