ACCT 2007 Western Energy Recovery Limited Yearend Accounts Receivable Circulation It is the 2021 yearend and you have been asked to perform the Accounts Receivable confirmation testing

ACCT 2007 Western Energy Recovery Limited

Yearend Accounts Receivable Circulation

It is the 2021 yearend and you have been asked to perform the Accounts Receivable confirmation testing.  You have the attached Aged Trial Balance from the CFO,  Elaine To.

Required

Prepare in good form the working papers for the Accounts Receivable and the Allowance for Doubtful Accounts for WER.  The balance in the Allowance for Doubtful Accounts is shown on the working paper C2.  You should confirm if this is reasonable in your opinion.  Materiality has been set at $500,000 based on sales. You should use the following section references:

              C          – Accounts Receivable

You can also use the following standard audit symbols plus making up your own f   – Footed

               #            – Cross footed

¢            – Calculated by auditor m     – Immaterial – no further audit work necessary

For more information on year end substantive procedures visit:

Professional Engagement Guide (PEG): https://researchguides.georgebrown.ca/c.php?g=490436&p=3356872 Here are some Youtube videos on working papers: https://www.youtube.com/watch?v=7KLaWcLeT1U And of course, save yourself time and frustration by seeing me.

Note:  Any time there is a reference to payments received after year end, you may use the simplifying assumption that you can trace the payment to the January cash receipts listing. E.g. step 4a