Debtors - audit process, Auditing

Debtors - Audit Process

Considering that what we have gone by on the other assets the audit work to check the figure of trade debtors should be follows as:

1) Get a schedule of debtors, preferably aged.

2) Validate the controlled records over sales and debtors by a selected sample of substantive testing and compliance testing.

3) Control account's detailed examination involving review of the reconciliation among the debtor's ledger and the control account.

4) Circularisation of debtors' sample strictly to confirm subsistence.

5) Carrying out cut off test to ensure about sales and stocks have been accounted for in the accurate time.

6) Analytical review through comparing sales or else debtors ratio along with previous years.

7) Looking for evidence to confirm such balances attributed to individual debtors are composed of exact items.

8) Evidence such all involved items are bona fide trade debtors.

9) Review of credit notes mattered than date to ensure about they do not cancel debtors balances.

10) Debtors examination for collectability.

11) Ensuring about each account is settled from time to time and enquiring also into credit balances.

12) On the schedule such is attained, the auditor tests balances on ledger accounts to the schedule and vice versa, he tests also the cast of the schedules and ensures about the totals agree to the balance of the control accounts.

13) The auditor tests the effectiveness of the system of internal control hence before he does that he has to determine that what the system is and a good system for debtors should ensure about:

  • Only bona fide sales bring debtors in to be;
  • All that sales are to approve customers;
  • All that sales are appropriately recorded;
  • Once they have been recorded the dates are merely eliminated through receipt of cash or on the authority of a liable official;
  • Debts are composed punctually;
  • Balances are habitually aged and reviewed. A specific system for follow up exists and whether essential adequate provision for doubtful and bad debts is made.

 

According to debtors the crucial concerns for the auditor are the existence of debtors and the valuation of debtors.

Posted Date: 1/28/2013 12:16:13 AM | Location : United States







Related Discussions:- Debtors - audit process, Assignment Help, Ask Question on Debtors - audit process, Get Answer, Expert's Help, Debtors - audit process Discussions

Write discussion on Debtors - audit process
Your posts are moderated
Related Questions
Why is studying Auditing different from studying other accounting topics?

am happy to pay someone to do my acc assignment which is more auditing one

postage stamps 220 currency and coins 1156.60 how much petty cash fund shall be shown as part of cash balance

Beneficial Ownership or Title In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to norma

#quInternal Audit checklist for fixed assetsestion..

In planning the audit work of the Ministry, the audit staff member collected these details relating to the construction of an office complex. 1. In September 1994, the Ministry

Specialized Audit Situations Companies carry on thousands of different types of trade, business or professional activities.  It is not possible in a manual on general auditing

Leasehold Property - Audit Process Exactly the same process is adopted for leasehold buildings and land as applied about freehold buildings and land except in the matter of de

QUESTION 1: Part A When planning a financial statement audit, an audit manager must understand audit risk as well as its components. The firm of Jack and Jackie calculates

Examples of Specialists Examples of specialists or experts whose work may be relied upon include: For valuations such as land and buildings, machinery and plant,