Reconcile AR by Assertion
Apply assertion thinking to investigate and document an accounts receivable variance.
AR in the GL is $860K higher than the billing subledger on Day 3 close. Assertion-led reconciliation: identify the threatened assertion, isolate the population, test direct evidence, and document the conclusion. The common trap is searching transactions at random. That burns time and may find a plausible item without proving the financial statement assertion. State assertion AR higher than subledger points first to existence or classification risk: the GL may include balances that do not belong in AR. The assertion narrows the test. If the GL were lower than the subledger, completeness might become the lead risk. Tie populations Tie…
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