| Course | AC410 Auditing |
|---|---|
| Unit | Unit 7 |
| Paper type | Audit workpaper set |
| Length | About 580 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Accounting |
| Updated | October 2026 |
Free sample paper for AC410 Unit 7
$5,240,000 of Dealer Receivables, Indexed C to C-4: A Unit 7 Workpaper Set for a Stair Lift Maker
[Student Name]
Purdue University Global
AC410: Auditing
Unit 7 Workpaper Set
[Instructor Name]
[Date]
Hallcroft Lifts, its dealers and every figure are composite; the standards, textbook and study cited are real.
Page Headings
Every page carries: Hallcroft Lifts; year ended December 31; index number; purpose; prepared by [initials and date]; reviewed by, left blank for the senior.
Tickmark Legend
1. F: footed.
2. TB: agreed to the trial balance.
3. GL: agreed to the general ledger.
4. C: confirmed without exception.
5. SR: traced to a cash receipt after year end.
6. SD: traced to a shipping document signed by the dealer.
C: Lead Schedule
Purpose: agree the balance and compare with the prior year. Dealer receivables, December 31: $5,240,000, TB, GL. Prior year: $4,870,000. Increase of $370,000, 7.6 percent, against sales growth of about 5 percent; the difference is explained on C-1.
C-1: Aged Listing
Purpose: foot the listing and agree it to C. Current, $3,960,000; 31 to 60 days, $812,000; 61 to 90 days, $286,000; over 90 days, $182,000; total $5,240,000, F, agreed to C. The 31 to 60 day bucket grew most, mainly from a December promotion with 60-day terms.
C-2: Confirmation Log
Purpose: obtain external evidence of existence. Fifteen positive confirmations sent January 8, covering $3,892,000, 74.3 percent of the balance: the three large dealer groups at $1,240,000, $980,000 and $412,000, and twelve others totaling $1,260,000.
1. Eleven returned and agreed, C, including all three large groups.
2. One timing difference of $64,500: the dealer recorded a payment mailed December 30; SR, received January 3. No misstatement.
3. One disagreement of $18,200: the dealer deducted a year-end volume rebate Hallcroft had not yet credited. Rebate tier recomputed; the dealer is right. Carried to C-4.
4. Two not returned after a second request, $98,400 and $41,600. Carried to C-3.
Every line on the confirmation log ends in one of three places, agreed, explained with evidence or carried to the misstatement summary, because an exception left with a note such as "follow up" is an exception the audit never resolved.
C-3: Alternative Procedures
Purpose: obtain other evidence for the two nonresponses. The $98,400 balance was paid in full on January 21, SR. The $41,600 balance is supported by invoices and delivery records for six lifts signed by the dealer's installer, SD; no payment yet. Existence supported for both. Confirmations are generally more reliable than internal documents because they come from an independent source (American Institute of Certified Public Accountants, 2020).
C-4: Summary and Conclusion
Proposed adjustment 1: reduce receivables and revenue by $18,200 for the unrecorded rebate, a factual misstatement above the $4,800 clearly trivial threshold. Because the rebate accrual is a significant risk, the team extended procedure 7 of the program to all dealers in the same tier.
Conclusion: existence of dealer receivables is supported, subject to adjustment 1. Valuation, including the large dealer group at $412,000, is addressed at C-5 after subsequent events are reviewed.
Workpapers serve as the record that the audit was planned and performed in line with standards and that evidence supports the conclusions (Arens et al., 2020). Research describes review as a persuasion process, in which preparers write each workpaper with its reviewer in mind and reviewers judge how convincing it is, which is one reason every page carries both sign-offs (Rich et al., 1997).
References
American Institute of Certified Public Accountants. (2020). Statement on Auditing Standards No. 142: Audit evidence. AICPA.
Arens, A. A., Elder, R. J., Beasley, M. S., & Hogan, C. E. (2020). Auditing and assurance services (17th ed.). Pearson.
Rich, J. S., Solomon, I., & Trotman, K. T. (1997). The audit review process: A characterization from the persuasion perspective. Accounting, Organizations and Society, 22(5), 481-505. https://doi.org/10.1016/S0361-3682(96)00042-3
Reading the AC 410 Unit 7 instructions
Unit 7 of AC410 asks for a set of workpapers documenting substantive tests over one account. Give every page a standard heading: client, period, index number, purpose and sign-off blocks for preparer and reviewer. Define each tickmark in a legend and use it consistently. Start with a lead schedule agreed to the trial balance and the ledger, with a comparison to the prior year and an explanation of the change. Support it with detail schedules such as an aged listing. Document the main test, such as confirmations, with what was sent, what came back and how each exception was resolved. Show alternative procedures for nonresponses. End with a summary page listing proposed adjustments against the clearly trivial threshold and a conclusion for each assertion tested. Cite the AICPA evidence standard, the textbook and research on review in APA 7.
How this AC410 Unit 7 example is built
The sample lists the page heading fields and leaves the reviewer block blank. A six-item legend defines F, TB, GL, C, SR and SD. The lead schedule at C agrees the balance and explains a 7.6 percent rise against 5 percent sales growth. C-1 foots the aged listing and traces the growth to a December promotion with 60-day terms. C-2 logs fifteen confirmations and sorts every reply into one of four outcomes. The highlighted sentence states the rule that every exception ends agreed, explained or carried forward. C-3 supports the two nonresponses with a January payment and installer-signed delivery records, citing SAS 142. C-4 proposes an $18,200 adjustment, extends rebate testing to the same tier and concludes on existence, citing Arens and colleagues and Rich and colleagues on review.
AC410 Unit 7 rubric: what earns full points
AC410 workpapers are graded on whether another auditor could follow them without asking a question. Every page needs its heading, purpose and sign-offs. Tickmarks must be defined and used consistently, and graders deduct for marks that appear without explanation. The lead schedule must agree to the trial balance and explain significant changes. Confirmation work should show coverage, results and the resolution of every exception, with nothing left at "follow up." Alternative procedures for nonresponses must provide real evidence of existence. Proposed adjustments should be compared with the clearly trivial threshold and linked to further work where the error suggests a pattern. A conclusion tied to specific assertions finishes each test. Cross-references between pages and APA 7 citations to the evidence standard account for the last of the marks.
AC410 Unit 7 help from the desk
Unit 7 sets often use tickmarks that never appear in a legend, or a legend that lists marks never used. The lead schedule is not agreed to the trial balance. Confirmation exceptions are noted and left open. Nonresponses are cleared by inspecting the client's own invoices alone, which proves little. A disagreement is written off as timing without checking. The reviewer block is filled in by the preparer. The conclusion says "fairly stated" without naming the assertion tested. Valuation is claimed from confirmations, which address existence. If your section audits inventory, payables or fixed assets, our writers can build the lead schedule, detail pages and exception trail for that account.
Get an AC410 Unit 7 example written to your instructions
Provide the account and figures your Unit 7 assignment supplies, any procedures it specifies, and the rubric. An indexed set with a legend on every page is prepared within 24-48h, reviewer lines left for your reviewer. Nothing is charged for a first custom sample drawn from your figures. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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AC410 Unit 7 questions, answered
Why leave the reviewer's sign-off blank?
Because review is performed by someone else, after the preparer finishes, and a sample that filled in a reviewer's initials would claim work that never happened. The AC410 sample completes the preparer block with bracketed initials and a date and leaves the reviewer block empty. If your assignment asks you to act as reviewer too, the sample adds review notes on a separate page.
What if my assignment covers inventory instead of receivables?
The structure transfers: a lead schedule, supporting schedules, count sheets or observation notes, exceptions and their resolution, a legend on every page and a conclusion on each. Send the account, the data your section supplied and the rubric. The workpapers are built on those figures, with procedures suited to inventory, such as count observation and price testing, in place of confirmations.
Where can I find a free AC410 Unit 7 sample paper?
This page holds a complete AC410 Unit 7 workpaper set over a composite stair lift maker's $5,240,000 dealer receivables, with a legend, lead schedule, aging, confirmation log, alternatives, a summary and APA 7 references.
What did the AC410 Unit 7 confirmation disagreement reveal?
A dealer had deducted a year-end volume rebate Hallcroft had not yet credited. The team recomputed the tier, found the dealer right, proposed an $18,200 adjustment and extended rebate testing to every dealer in that tier.
How were the two nonresponses in AC410 Unit 7 cleared?
The $98,400 balance was paid in full on January 21, and the $41,600 balance was supported by invoices and delivery records for six lifts signed by the dealer's installer.