• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

audit procedures to assess valuation of receivables

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › audit procedures to assess valuation of receivables

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 1, 2021 at 3:12 am #626756
    Noah098
    • Topics: 936
    • Replies: 352
    • ☆☆☆☆☆

    ma’am what is the difference between audit procedures of aged analysis and calculation of receivables days?

    Both serve the same purpose of assessing the bad debts and allowance for doubtful debts, however how are the 2 processes different?

    July 1, 2021 at 7:38 am #626766
    Kim Smith
    Keymaster
    • Topics: 91
    • Replies: 6211
    • ☆☆☆☆☆

    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.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • 5327900ALLEN on Accruals and Prepayments (part a) – ACCA Financial Accounting (FA) lectures
  • John Moffat on Sources of Finance – Debt – ACCA Financial Management (FM)
  • John Moffat on Sources of Finance – Debt – ACCA Financial Management (FM)
  • kcdumpmail on Sources of Finance – Debt – ACCA Financial Management (FM)
  • Califa on Presentation of financial statements – Example 1 (revision) – ACCA Financial Reporting (FR)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy