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Hi sir, does the following procedures test the following assertions stated ,
– Review whether there are any after date cash receipts for slow moving recivables : Existence
– Calculate the potential level of receivables which are not recoverable and assess whether this is material or not and discuss with management : Valuation
Am i right sir ?
The first one also helps with valuation. If a receivable has been outstanding for a long time, you have to consider whether it should be provided against. If, however, the cash os received after year end, the debt can be valued in full.
Your second point os correct.
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