Learn how to perform procedures to validate the cut-off assertion, for accounts receivable (AR) balances using the DataSnipper tool.
In this video, you will learn how to perform accounts receivable cut-off procedures.
Here you can download the workbook shown in the video including all of the sample data and documents.
Here you can download a blank version of the workbook shown in the video to use or customize for your own procedures.
- Sample taken from accounts receivable listing in Excel
- Any supporting evidence proving the amount, invoice date, goods/services delivery date, and payment date as well as any other fields required to be reconciled for your procedure.
- Import and make document groups for each type of document, you are reconciling.
- Click the document matching button in the DataSnipper toolbar, you can select the document groups you created in the previous step at this point.
- Configure the document matching test by letting the tool know which row your headers are located in and which columns to output the snipped data in. In the case of this procedure, it may be helpful to reconcile the invoice/order number, amounts, and dates.
- Click the match all rows button. Once the matching is completed you can review the output by moving through the snipped cells.
- Use manual snipping to extract extra information (such as the delivery and payment date) and also confirm that any order proposals used (in case the receivable is not yet paid) were signed and countersigned.
- Review each set of documents and check if it was correctly included or excluded from the AR listing. For example, if a sample item was invoiced in CY, delivered in CY, and then paid in the next year its valid that this was included in the current year AR listing. However, if an item was invoiced in CY, received in CY, and then also paid in CY, since this was also included in AR this is an error.
Sharing the file
- You can choose to exclude all documents before saving the workbook in your audit file, by selecting the include/exclude documents toggle.
- You have some options to delete specific documents, please click here to learn more.