- This topic has 3 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Good day sir,
does the circularisation (confirmation letter) of receivables provide evidence for bad debt and provision of doubtful debt?? If it is, how does it prove?No, it does not. A dishonest debtor who had no intention of paying could reply that all was well just to avoid raising people’s suspicions.
Circularisation provides evidemce about accuracy, existence and ownership.
Sir, may I knw what testing we need to carry out to provide evidence for bad debt and provision of doubtful debt?
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘receivable circularisation’ is closed to new replies.