Set tolerable misstatement FIGURE 12-10 and assess inherent risk for accounts receivable Assess control risk for sales d collection cycle Methodology for Design and perform Designing tests of tests of controls and substantive tests of Details of transactions for sales and Balances-Accounts receivable collection cycle Design and perform analytical for ac receivable balance Design tests of details of Audit procedures accounts receivable balance Sample size to satisfy balance-related Items to select audit objectives TImIngArens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 12 - 10 Methodology for Designing Tests of Details of Balances-Accounts Receivable