Assume that you have audited accounts receivable as of 12/31/2023 and are 10 confident that the ending balance should be $7,188,000. Further, you know that the audited balance as of 12/31/2022 was $8,462,000. You also verified cash deposits from customers through a review of the bank account. Based on that review you believe that cash receipts from customers ranges from an amount of $40,000,000 to $41,000,000. Which amount below would represent an overstatement of revenue for the year ending 12/31/2023, based on the facts above? 1) $39,100,000 2) Not determinable based on the facts above. 3) $38,500,000 O4) $39,762,000 O5) $41,000,000

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 18RQSC
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Assume that you have audited accounts receivable as of 12/31/2023 and are
confident that the ending balance should be $7,188,000. Further, you know that the
audited balance as of 12/31/2022 was $8,462,000. You also verified cash deposits
from customers through a review of the bank account. Based on that review you
believe that cash receipts from customers ranges from an amount of $40,000,000 to
$41,000,000.
Which amount below would represent an overstatement of revenue for the year
ending 12/31/2023, based on the facts above?
1) $39,100,000
O2) Not determinable based on the facts above.
3) $38,500,000
O4) $39,762,000
5) $41,000,000
Transcribed Image Text:Assume that you have audited accounts receivable as of 12/31/2023 and are confident that the ending balance should be $7,188,000. Further, you know that the audited balance as of 12/31/2022 was $8,462,000. You also verified cash deposits from customers through a review of the bank account. Based on that review you believe that cash receipts from customers ranges from an amount of $40,000,000 to $41,000,000. Which amount below would represent an overstatement of revenue for the year ending 12/31/2023, based on the facts above? 1) $39,100,000 O2) Not determinable based on the facts above. 3) $38,500,000 O4) $39,762,000 5) $41,000,000
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