The audit of accounts receivable can be complex with numerous issues for an audit engagement team. In this simulation/case, students are exposed to various issues as they audit Cardinal Corporation. Students assume the role of an experienced associate auditor heading into her second busy season as she leads the fieldwork for accounts receivable and allowance for doubtful accounts. The case provides the accounts receivable audit program; students complete each step and select samples with a focus around the aging of accounts receivable analysis test for allowance for doubtful accounts. Work papers such as confirmations, invoices and bills of lading have been prepared and a detailed rubric is available. The simulation is unique, allowing for role playing and different outcomes based on sample selection. The case has been used repeatedly with staff of a global leading professional services firm, with affirmation of its efficacy.
Lureau, S. 2020. Auditing Accounts Receivable and Allowance for Doubtful Accounts at Cardinal Corporation. The North American Accounting Studies 3 (1): 21-40.