14-30 (substantive tests of accounts receivable) the following situations were not discovered by an inexperienced staff auditor in the audit of the parson company.

1. Several accounts were incorrectly aged in the 
client's aging schedule. 
Procedures: Compare age% to prior year AR -Analytical procedures. 
Assertion: cutoff, Valuation and allocation. 

2. The accounts receivable turnover ratio was far below 
expected results. 
Procedure: AR analytical test: AR/AP, AR turnover,etc.-Analytical procedures. 
Assertion:Completeness, cutoff. 

3. Goods billed were not shipped. 
Procedure: Cutoff test of billing-test the last month invoices. Vouching to the shipping doc.-Inspection of records. 
Assertion: Occurrence, cutoff. 

4. Some year-end sales were recorded in the wrong 
accounting period. 
Procedure: cut off test of billing-test invoices billed subsequent to year end.-Inspection of records 
assertion:Completeness, cutoff 

5. Several sales were posted for the correct amount but to 
the wrong customers in the accounts receivable ledger. 
Procedure: Confirmation of billings-Confirmation 
Assertion: Occurrence. 

6. The allowance for uncollectable accounts was 
understated. 
Procedures: Test the ratio of allowance to old AR and compare to PY. 
-Analytical procedures. 
Assertion:Valuation and allocation 

7. Several sales were entered and posted at incorrect 
amounts. 
Procedures: Confirmation of AR. -Confirmation 
Assertion: Accuracy and valuation 

8. Mathematical errors were made in totaling the accounts 
receivable ledger. 
Procedures: Foot AR aging.-Recalculation 
Assertion: Accuracy and valuation 

9. An unrecorded sale at the balance sheet date was 
collected in the next month. 
Procedure: Post subsequent cash to AR balance at YE. Reperformance. records. 
Assertion: Completeness, cutoff. 

10. Several fictitious sales were recorded. 

Procedure: Confirm customer balance.-Confirmation. 
assertion: Occrrence. 

11. The pledging of some customer accounts as security for 
a loan was not reported in the balance sheet. 
Procedure: Review security agreements.-Inspection of record. 
Assertion: Occurrence and rights and obligations. 

12. Some year-end cash receipts were recorded in the wrong 
accounting period. 
Procedure: cash cutoff testing.-Inspectionof record. 
Assertion: cutoff, occurrence, completeness. 

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.