Summary Of Audit Work Carried Out On Trade Debtors/ Accounts Receivables

Tweet Append below a snapshot of audit work to be performed on Trade Debtors/Accounts Receivable:     Audit Work On Trade Debtors 1.0 The Ascertainment Of Sound Accounting Systems & Inherent Internal Controls On Sales 2.0 Year End Audit Work On Trade Debtors/Accounts Receivables 3.0 Trade Debtors Circularization 4.0 Ascertainment Of Correct Cut Off 5.0 […]

Audit Work On Trade Debtors: Ascertainment Of Adequacy Of Bad Debts and Provision for Doubtful Debts

Tweet The auditor will need to be satisfied that the figure appearing in the balance sheet for trade debtors is all receivable. The auditor will have to be satisfied that an adequate provision had been made for all debts. 1. Obtain a detailed age analysis of the year end of debtors and test the analysis […]

Audit Work On Trade Debtors: Debtors Circularization (Part1of2)

Tweet A debtors’ circularization should be undertaken to obtain direct confirmation from the customer that the balance is correct. The auditor should: Obtain the client’s permission If this is not forthcoming, the auditor will have to decide if alternative procedure are available to overcome this e.g. extended testing of customers’ remittance advice Decide the sample […]

Year End Audit Work On Trade Debtors/Accounts Receivable

Tweet Append below, the audit work that is required to be performed by the auditor: obtained a detailed list of balances; agree the list to the ledger by testing a selection of the balances; agree the list to the debtors’ ledger control account; scrutinize the control account for unusual items and test a selection of […]

Trade Debtors: Accounting System And Inherent Controls on Sales

Tweet During the process of verifying trade debtors, the auditor needs to ascertain adequate internal controls on the client’s accounting system which in particular sales. The auditor will need to be satisfied that: all orders received are correctly executed; an invoice is produced for all goods dispatched; credit is given only in approved circumstances; customers […]