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Ask the Tutor ACCA AA

creditworthiness of client's customers

Former userFormer user5y ago

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KimKimTutor5y ago#1
Assessing the creditworthiness of customers is management's responsibility - there should be controls in place to ensure that customers are creditworthy before they are given credit. So credit scores/references should included already in the client's documentation. Is not for the auditor to independently obtain credit scores/references.
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