- This topic has 5 replies, 2 voices, and was last updated 10 years ago by
.
-
Posts
-
Why is it that a reconciliation with the supplier statement will check for completeness but circularisation for receivables Balance won’t?
You can only circulate to customers you know about already so this will not identify missing ones.
Not sure how good the supplier reconciliation test is. If you know about a supplier the test will help show that all invoices are posted to the payables account. However, if a supplier is not listed AND statements are not sent or are suppressed by the client a payable could be missed.
But the circularisation could identify customers whose balances are understated in the clients records, which would confirm completeness.
It would confirm existence, ownership and completeness of the receivables you know about. But it would not be conclusive evidence of completeness of the total receivables in the sofp.
Neither would circularisation of payables, yet it is listed as a test for completeness for payables. Odd.
- You must be logged in to reply to this topic.