Accounts receivable: An audit simulation

Mark Edmonds, Tad Miller and Arline Savage

Journal of Accounting Education, 2019, vol. 47, issue C, 75-92

Abstract: This simulation allows you to confirm accounts receivables electronically. It contains 1000 customer accounts from which you select a random sample. Confirmations are created and then sent to customers. Some confirmations are returned with discrepancies. For confirmations not returned, the simulation creates invoices, bills of lading, and purchase orders necessary for you to perform alternative procedures. Although the simulation requires little class time, you perform several audit procedures that help you gain an understanding of (1) the confirmation process; (2) alternative procedures for receivables; (3) the evaluation of audit evidence; (4) the preparation of work papers; and (5) statistical sampling as a tool to manage risk. The project requires approximately one hour to complete.

Keywords: Audit; Accounts receivable; Confirmations; Risk; Sampling; Vouch (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S074857511730194X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joaced:v:47:y:2019:i:c:p:75-92

DOI: 10.1016/j.jaccedu.2019.04.001

Access Statistics for this article

Journal of Accounting Education is currently edited by Natalie Tatiana Churyk

More articles in Journal of Accounting Education from Elsevier
Bibliographic data for series maintained by Catherine Liu ().