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sir in the case where receivables are struggling to pay the auditors response is to extend post-year end cash receipts testing can you plz explain me this point ” to extend post-year end cash receipts testing”
If $10,000 is owing at year end ant it is received on, say, 15/2, then it was obviously a good debt at year end and didn’t need to be written down.
If, however, it is not received for weeks after year ens there must be more doubt as to its recoverability.
To discover whether year end amounts have or have to been received after year end post year-end cash receipts need to be carried out.
what is that 15/2 means? 😀
sir do we need to understand the concept of ”post-year end cash receipts” for this paper? because i don’t know have even a slight knowledge on this topic. is it mandatory to know where it belongs in financial statements?
15 February.
Yes you do need to understand it. Cash received means that the debt was safe.
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