Accounting System

In: Business and Management

Submitted By remy
Words 285
Pages 2
a. Accounts Receivable Aging is a report showing the accounts receivable (the amounts owed to the company by its customers), and also including the length of time the amounts have been outstanding. Typically, the aging report categorizes receivables as "current," "30 days," "60 days," "90 days," and "120 days and over." The purpose of this report is to show the business owner what receivables need to be dealt with more urgently because they have been overdue longer.

b. Auditors perform a variety of critical procedures with this report.
The Accounts receivable aging report is needed by auditors to verify that the balances on the subsidiary ledger agree with the General Ledger at a given point in time.
Auditors are required to confirm a selection of customer account balances directly with the customers.
It is also used to assess the adequacy of the Company's provision for bad debts. Toward the end of the audit, auditors may attempt to verify that certain accounts receivable have been collected, or if not collected, the auditor may perform other procedures for assurance that the accounts are collectible.
Auditors verify that any accounts receivable from related-parties are identified and properly disclosed.
Auditors will also perform an array of analytical procedures on the report, and may perform additional procedures based on the results of that testing.

c. It tells you how much you have invoiced but not yet been paid at a certain point in time. It's basically an indicator of how long it takes your vendors to pay their bill to you.

d. Data needed is amount outstanding, date and company

e. Mostly from your accounting program in the AR section under aging report…...

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