These audit programs relate to tests using TopCAATs audit software.

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Auditor
AUDIT PROCEDURES ASSERTION WP Ref Initials
This audit program covers a variety of tests that can be
performed using TopCAATs to gain comfort over Trade
Receivables. Not all tests will be appropriate on every
engagement, and some of the tests duplicate coverage
as your approach may depend on the information you
have available.
In addition, this is not a comprehensive list of tests, and
it may be appropriate to add additional tests to ensure
you gain sufficient comfort.
Please ensure that you select appropriate tests, and
avoid over/under auditing.
C = Completeness, E = Existence, A = Accuracy, V =
Valuation, O = Ownership, P = Presentation
F = Fraud, D = Disclosure
Ref Description Assertion
Trade Receivables Ledger Section Module
Obtain a listing of account balances comprising the
period-end trade receivables ledger and run the Trade
Receivables Section Module. The listing should include
the following fields
Account code the customer account
code/number (mandatory)
Account name the customer account
name
Account balance the period end balance
on the account (mandatory)
Credit limit the customer accounts credit
limit
Using the credit balances test, extract all accounts with
a credit balance.
F
Understand the reasons for these credit
balances and whether they represent fraud or
error, or are legitimate.
If the total of credit balances is significant,
ensure they have been included in Trade
Payables, rather than Trade Receivables
C
Using the over credit limit test, extract all accounts with
balances greater than their credit limit.
E
Understand whether these represent a
failure of credit limit controls, or whether they have
been authorized.
3
1
2
Understand whether these represent fraud
or error
F
Using the over amount test, extract all accounts with a
significant balance
Confirm the period-end balance with the
customer via letter, e-mail or other suitable means
Ensure the balance confirmation is sent
directly to the Auditor, rather than via the client
Reconcile the balance recognized by the
customer to the period-end balance per the ledger
Where responses are not received after
chasing, perform alternative procedures to verify
these significant balances
5 Review the column statistics report, and ensure that the
source data appears reasonable (i.e. no text entries in
numeric columns, blanks in date columns, etc)
Other Trade Receivable Ledger Tests
Review the ledger for any accounts that are related
parties and ensure that period-end balances are
disclosed.
Use the specific comments tool to look for known
related parties
D
F
8 Review the ledger for any unusual account names, such
suspense accounts using specific comments
E F
9 Where the remaining balances not confirmed in test 4 is
significant, use an appropriate TopCAATs sampling
method to test the remaining balance (e.g. MUS)
CEA
10 Perform Benfords testing on the ledger to ensure that
the data appears to be natural
F
Trade Receivables Listing Section Module
Obtain a listing of transactions comprising the period-
end trade receivables ledger and run the Trade
Receivables Listing Section Module. The report should
include the following fields
Account code the customer account
code/number (mandatory)
Account name the customer account
name
3
4 C E A
6 D
7 Review the ledger for any employee receivables and
ensure these are legitimate and disclosed where
appropriate. Join 2 sheets can be used to identify
matches between employee names and receivable
accounts
11
Invoice reference the reference number
for the invoice
Invoice amount the value of the invoice
(mandatory)
Invoice date the date of the invoice
Due date the date the invoice is due to be
paid
Posted by the name of the user who
posted the invoice
Posted time the time the invoice was
posted
Posted date the date the invoice was
posted
Transaction type the transaction type
code
12 Ensure the sum of the invoice amount column and
ensure this reconciles to the sales ledger control
account balance(s) per the Trial Balance (the sum of
this column can be found on the Section Module
Summary sheet)
C E A
Using the aging test, age the report by Invoice date
using Months for the aging bands and the period end
date as the aging reference date.
Understand whether invoices that are
old/overdue represent debts at risk of going bad,
and determine if a bad debt provision is required.
14 Using the Duplicates test look for any duplicate invoice
references, and understand why the same invoice
number has been issued twice
E
Using the Over Amount test extract any records over a
significant amount.
Ensure the balances appear reasonable,
and obtain explanations for each item
16 Using the Credit balances test extract all records with a
credit balance. Understand the reasons behind these
records, and if significant consider whether they should
be included in Trade Payables
V
Using the transactions posted on test, extract any
transactions posted on a Saturday or Sunday.
Understand whether these are legitimate
transactions that have been posted in the ordinary
course of business, and why they have been
posted on non-working days.
You can add the posted by field to the
pivot table to understand who is posting
transactions on non working days
Using the transactions posted on specific dates test,
extract any transactions posted on other non-working
days, such as public holidays.
11
13 V
15 AV
17 F
18 F
Understand whether these are legitimate
transactions that have been posted in the ordinary
course of business, and why they have been
posted on non-working days.
You can add the posted by field to the
pivot table to understand who is posting
transactions on non working days
Using the transactions around a specific date test,
extract all transactions posted in the 7 days prior to the
year-end.
Select a sample of these items and perform
cut off testing (i.e. ensure that the goods have
shipped/services supplied in the current period)
Using the transactions posted at specific times test,
extract all transactions posted out of expected working
hours.
Understand whether these are legitimate
transactions that have been posted in the ordinary
course of business, and why they have been
posted outside normal working hours.
You can add the posted by field to the
pivot table to understand who is posting
transactions outside business hours
Using the transactions by user test, produce a
summary of transactions by user.
Review the list of users for any that you
would not expect to be posting to the sales ledger.
Understand whether these transactions are
legitimate and do not represent fraud or error.
Using the rounded transactions test, extract
transactions rounded to 1,000, 10,000, 100,000, or
1,000,000 as appropriate considering materiality.
Understand whether these are legitimate
transactions and do not represent fraud or error.
23 Review the column statistics report, and ensure that the
source data appears reasonable (i.e. no text entries in
numeric columns, blanks in date columns, etc)
Other Trade Receivables Listing Tests
Using the Exception report tool extract from a trade
receivables transactions listing as at the current date
(i.e. after the period-end) those transactions that were
dated before year-end.
Review the level of uncollected balances
and determine whether there are any aged
amounts that should be provided against
18 F
19 C E
20 F
21 F
22 F
24 V
25 Use Join 2 Sheets to join an after date listing with the
period end listing (by invoice number, matches only
from both sheets). Investigate matches to understand
why they are still on the ledger
V
Obtain a listing of after-date credit notes, and use Join 2
Sheets to join this (by invoice number) to the year end
listing (matches only from both sheets).
E
Review significant credit notes to ensure
they are appropriate and do not represent false
sales
F
Use the Same Same Different test (within the Duplicate
tool) to look for records where the amount and invoice
number is the same, but the customer is different.
Investigate any records matching these
criteria and understand why two different
customers have issued the same invoice
Obtain a listing of all invoices issued during the period
and run the Gaps tool
C E A
If gaps exist in the invoice numbers issued,
understand why these gaps occur
F
29 Review write-offs during the year to ensure theyve been
authorized
C
30 Perform Benfords testing on the listing to ensure that
the data appears to be natural
F
28
26
27 E F
Audit Program
Trade Receivables
Time Date Date Checked
Spent Expected Finished Remarks By: