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According to me, the following:
1. check if the opening balances of the current year tally with the closing balances of the last year.
2. Check how long debtors have been standing in the books to consider possibility of bad debts and if necessary obtain a statement of balances from the management of the company
3. discuss with the management to make sure that the balances are kept up-to-date and payments are being chased.
4. Any other substantive procedures such as vouching and verifying against the bills/invoices raised.
5. if receivable is in foreign currency, check if the correct treatment according to ias 21 is given.
6. analytical procedures such as comparing with last years receivables or turnover days.etc
-obtain an aged receivables list.Perform receivable circularisation to ascertain that none of the material balances recognised in current assets as receivables are infact bad debts.
-scrutinise the board minutes for any discussions encapsulating material bad debts.In order to ensure that adequate disclosures , provisions and write offs have been made.
-Recalculate the list of balances in the receivables control account and ensure that it matches the balance in the general ledger.For accuracy
-Review the credit department`s correspondence with clients/customers for any evidence of bad debts or queries relating to specific balances in the receivables control account
-calculate the receivables days (trade receivables/sales *365) in order to ascertain the health of company`s future cashflows.Note that in some cases this may support the going concern assessment problem.Remember , audits are by far becoming risk based in terms of approach.Therefore you should be able to come up with your own audit procedures by just understanding a specific account and sources of risk of material mistatement.Either by error or fraud.Hope this helps
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