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Expert: Don Sadler - 12/12/2007


Question
In the audit of receivables, existence is generally the primary objective, correct?  I was recently asked what are examples of substantive procedures to identify occurrence of sales transactions?  Are they the same for occurrence and existence of receivables?  Your thoughts would be much appreciated.  Thanks.

Answer
The primary objective of testing receivables is to validate the existence and accuracy to ensure they are are not overstated.  The testing is typically done by sending out verifications.

Substantive procedures to identify occurrence of sales transactions would not be the same as testing receivables.  Sales transactions are generally verified through cash register receipts, EDI transactions, invoices, etc.

Auditing

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Don Sadler

Expertise

I can answer regarding Internal Auditing - especially operational audits, audit management, and how to revitalize a dysfunctional audit department. Also give advice to "auditees" on how to deal with auditors.

I DO NOT ANSWER HOMEWORK OR CLASS PROJECT QUESTIONS. For those answers, I suggest you scan previously asked questions and search on your favorite search engine.

I ALSO DO NOT ANSWER TAX QUESTIONS AS THIS IS NOT WITHIN MY EXPERTISE. NOTE: I am not an accounting expert although i will try to help if I can... ask at your own risk.

Experience

I have worked in the public and private business management arena with experience in OMB, Resource Management, Internal Auditing and consulting. I am a former President of the Inland Empire Chapter Institute of Internal Auditors, previously held Director positions in the Orange County Information Systems Audit and Control Association and the Northern Telecom International User's Association. I am a Certified Fraud Examiner and a Certified Information Systems Auditor.

Organizations
Institute of Internal Auditors, Association of Certified Fraud Examiners, and Information Systems Audit and Control Association (ISACA)

Education/Credentials
MBA, CISA, CFE

Founder and Principal of Applied INTEGRITY Management Consulting Group

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