audit procedures to assess valuation of receivables

The auditor is confined to performing only one procedure per assertion but must accumulate sufficient evidence. If receivables are material and the auditor has an expectation that receivables days will be 60 days (because that's what it was last year and the year before) - if it's still 60 days that - alone - would not be sufficient evidence that whatever has been allowed for "doubtful" debts is sufficient. Management should be making allowances considering the age of the debt say: Up to 30 days (the credit period allowed) - 0% 31-60 days - 2% 61-90 days - 5% 91-120 days - 15% 121-150 days - 50% >150 days - write off So the auditor will carry out some tests of details on the client's aged analysis to confirm the age of the debts for a sample of customers.