Substantive Procedures.

Sir kindly say if these substantive procedures give assurance regarding the year end receivables figure:

1) Calculate and compare receivables days for current & previous yr to ascertain any significant differences and investigate.

2) Positively circularised a sample of receivables balances as at yr end to confirm existence.

3) Review post year end cash receipts that relates to amounts outstanding pre year end to ascertain any amounts still outstanding and discuss with management/ credit controller the need for an allowance.

4) Inspect the receivables aged analysis as at year end for evidence of long outstanding amounts and discuss with management/ credit controller to determine whether amounts should be written off.

5) Inspect the receivables aged analysis for evidence of credit balances to ascertain whether a reclassification to payables is needed.

6) Review a sample of post yr end credit notes to identify that those relating to pre yr end tansactions were not included in the yr end receivables balance.

7) For a sample of yr end receivables balances, trace to originating invoice, GDN and sales order note to confirm the existence and ownership (right).

8) Inspect post yr end board minutes for evidence of irrecoverability of debt for large or specific customers and enquire whether these amounts were provided for.