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Good day sir,
does the circularisation (confirmation letter) of receivables provide evidence for bad debt and provision of doubtful debt?? If it is, how does it prove?No, it does not. A dishonest debtor who had no intention of paying could reply that all was well just to avoid raising people’s suspicions.
Circularisation provides evidemce about accuracy, existence and ownership.
Sir, may I knw what testing we need to carry out to provide evidence for bad debt and provision of doubtful debt?
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