AR Confirmations Discussion Assignment

November 2, 2022

AR Confirmations Discussion Assignment

Order ID	35675990
Type	Essay
Writer Level	Masters
Style	APA/MLA/CHICAGO
Sources/References	4
Perfect Number of Pages to Order	5-10 Pages

Description/Paper Instructions

AR Confirmations Discussion Assignment

1. The customers state that they have already paid their balance. They wrote a check on 12/28 for the 10 pallets of shoes. This account is probably valid, since the check was likely received after year-end, which is 12/31.

The customer also stated that the account balance was incorrect, according to their records. The customer’s records indicated they had a balance of $3,053,144.23, while our records indicated that they had a balance of $3,051,755.48. This is a difference of $1,388.75.

To follow up this confirmation, our company should examine the sales order, invoices, and shipping documents to confirm the balance. We should also examine subsequent cash receipts to ensure payment for this account was received, as well as verifying the date on the receipt.

2. The customer has confirmed the balance with us. However, they also mention that they have entered into involuntary bankruptcy, which they informed us back on November 3rd. Since they have confirmed the balance, we must review the accounts for collectability and determine the appropriateness of the allowance for doubtful accounts which supports the valuation assertion.

This involves examining subsequent cash receipts from Mall-Warts, discussing the unpaid account with the credit manager, and examining the credit files, which contain the customer’s financial statements, credit reports, and correspondence between the client and the customer. After the examination of these documents, we can make an estimate for the likely amount of nonpayment from the customer, which we will include in the estimate of the allowance for doubtful accounts. If needed, we will record an adjusting entry for the difference in the estimate and recorded allowance for doubtful accounts balance.

AR Confirmations

	E-3.1
	E-3.2
											A
	E-3.3
	E-3.4
	E-3.5
	E-3.6
	E-3.7

When you examine customers’ responses on the returned confirmations, you will see that several customers have disputed the outstanding AR balance as of the fiscal end date. As you see in EXHIBIT 7.13 in the textbook (page 296), auditors must take follow-up actions to investigate whether these discrepancies indicate a misstatement.

Describe an appropriate follow-up action for each case of confirmations. Note that not all discrepancies in the confirmation lead to a conclusion that the A/R balance is misstated. You may even conclude that the customer is mistaken and there is not further action to be taken. Submit a Word file with your answers.

First Attachment: example of how to do it.

Second attachment: the A/R vouchers

I need you to do 3.6 and 3.7 please

AR Confirmations Discussion Assignment

	Excellent (4)	Good (3)	Needs Improvement (2)	Poor (1)
Language/Spelling/ Grammar	Presentation has no spelling or punctuation errors and very few grammatical errors. Very well written and excellent use of business language.	Presentation has a few punctuation or spelling errors. Few grammatical errors that don’t affect meaning. Well written and use of business language is acceptable.	Presentation has some punctuation or spelling errors. Some grammatical errors but generally don’t affect meaning. Language is satisfactory overall but use of more appropriate business language is required.	Presentation has numerous punctuation or spelling errors. Numerous grammatical errors that affect meaning. Language used is unprofessional and not appropriate for business use.
Presentation Organization and Formatting	Relevant sections are included, and each is organized effectively. Formatting is professional and consistent and includes all required elements.	Relevant sections are included but could be a little better organized. Formatting is acceptable and/or one or two required elements are missing.	Relevant sections are included but organization could be improved. Formatting is inconsistent and/or many elements are missing or not formatted appropriately.	Sections are missing and/or poorly organized. Formatting is messy and unprofessional.
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