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You are auditing the accounts receivable balance of a cable television provider. Individual accounts receivables tend to be similar in amount to each other and cover one or two months of service charges. The client has a computerized billing system that makes it easy to access individual customer's records. The total accounts receivable balance makes up 23% of the firm's total assets. You did the audit for the firm last year and found few errors in their accounts receivable balance.

a) Would you use a sampling technique to test their balance and, if so, would you use statistical or non-statistical sampling? Explain your answer.

b) What method would you use to test an individual account balance and why?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9969505

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