Representation and other information regarding management’s intention to retain securities
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Security confirmations
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Confirmations of security positions with brokers and dealers
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Security confirmations
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Market value quotations
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Minutes of board or committee meetings
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Custodian’s reports
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Custodian’s reports
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Appraised values of infrequently traded securities
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Contractual terms of debt securities and preferred stocks
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Review of subsequent transactions
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Foreign currency exchange rates from newspapers, and so on
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Confirmation of securities pledged under loan agreements, and so on
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Review of controls over security of investments and transactions
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Receivables
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Confirmation of account balances
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Tests of year-end sales and shipping cutoff procedures
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Confirmation of account balances
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Aging of open balances
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Confirmation of terms with debtors
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Underlying customer orders and agreements, invoices, and shipping documents
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Reconciliation of trial balances and general control accounts
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Subsequent collections
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Credit experience and terms
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Sales agreement and contract terms
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Subsequent collections
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Analytical relationship of balances to recent sales volume
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Sales records
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Credit reports on customers
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Terms of notes receivable and collateral held
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Customer correspondence
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Analyses of general ledger account activity
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Customer correspondence
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Correspondence on collection follow-up
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Confirmation of receivables sold with recourse, discounted, pledged, and so on
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Sales records
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Review of controls over billings and cash receipts
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Promissory notes
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History of sales returns and allowances
Industry experience and trends
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Subsequent collections, credits, and write-offs
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Discussion with credit and collection personnel
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Review of controls over credit extension and collection
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Foreign currency exchange rates from newspapers, and so on
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Inventory
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Physical counts
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Tests of year-end shipping and receiving cutoff procedures
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Physical counts and confirmations
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Purchasing and manufacturing cost records
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Confirmation of inventories pledged under loan agreements, and so on
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Confirmation of inventories not on hand
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Reconciliations of physical counts with perpetual records and general ledger balances
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Paid vendors’ invoices
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Vendors’ invoices
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Perpetual inventory records
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Analytical relationship of balances to recent purchasing, production, and sales activity
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Consignment agreements
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Review of labor rates
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Underlying purchasing records, including purchase orders, vendors’ invoices, and receiving reports
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Analyses of general ledger account activity
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Purchase agreements and contracts
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Analyses of purchasing and manufacturing standard cost variances
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Underlying production records
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Review of controls over accounting for receiving, production, and shipping activities
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Physical observations and confirmations
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Open purchase commitments
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Subsequent sales and delivery reports
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Review of controls over inventory records
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Current market value quotations and replacement cost information
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Plant tour for possible excess and obsolescence
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Discussion with production and sales personnel
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Inventory turnover schedules
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