Assertion Auditing objectives What could go wrong? Mitigating controls Data analysis auditing procedures Data requirements Accounts receivable – account balance Existence Amounts reported in the financial statements represent valid receivables. An order is placed and a receivable is recorded without any product being shipped. Debits to accounts receivable are only generated from the order entry system. ► Compare debits to accounts receivable against recorded sales. ► Review and test subsequent receipts. ► Evaluate proper segregation of duties by examining postings by source and preparer (e. g., sales only entered by authorized salesclerk). ► Sales amounts ► Cash receipt amounts ► Customer names ► Transaction dates ► Transaction numbers ► General ledger postings by preparer and source (e. g., order entry) A shipping number and FedEx identification number are entered into the system as evidence of order fulfillment and discrepancies are investigated. ► Verify that every sales transaction has a shipping number and FedEx identification number. ► Analyze gross margin percentage trends by month and by customer. ► Customer names ► Transaction numbers ► Shipping numbers ► FedEx ID numbers ► Sales amounts ► Cost of goods sold amounts ► Transaction dates