Accounts Receivable Controls in the Financial Report, There Are Many Risks Associated with Risks

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The Answer is Potential risks associated with accounts receivable include:
• excessive credit memo or other credit adjustments to accounts receivable after the end of thefiscal year
• customer complaints and discrepancies in accounts receivable confirmations (e.g. disputes overterms, prices or amounts)
• unusual entries to the accounts receivable subsidiary ledger or sales journal
• missing or altered source documents or the inability of the client to produce original documentsin a reasonable period of time
• a lack of cash flow from operating activities when income from operating activities has been reported
• unusual reconciling differences between the accounts receivable subsidiary ledger and controlaccount
• sales to customers in the last month of the fiscal period at terms more favourable than previous months
• pre-dated or post-dated transactions
• large or unusual adjustments to sales accounts just prior to or just after the fiscal year end.

Accounts Receivable Controls in the Financial Report, There Are Many Risks Associated with Risks

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Accounts Receivable Controls in the Financial Report, There Are Many Risks Associated with Risks

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Correct Answer:VerifiedShow Answer

Correct Answer:
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