Subsequent receipt testing
Subsequent receipt testing examines cash received after the reporting date to obtain evidence about receivables outstanding at that date. The auditor matches receipts to specific balances and considers whether the evidence supports the assertion being tested.
Worked example
A January bank receipt is matched to an unpaid December customer invoice and remittance advice.
Common mistake
A later receipt can support existence and recoverability, but it does not automatically prove all year-end balances are complete or correctly cut off.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Direct | September 2026–June 2027 |