3.4.

5: CONTRUCT SUITABLE
AUDIT PROCEDURES ON
TRADE RECEIVEABLES.
• Opening balance and general balance ledgers agreed to last year trade receivables.
• Obtain an aging listing of debtor balance and test balances aging by comparing
amount to sales invoices, and the debtors subsidiary ledgers.
• Select sample of debtors for confirmation differences that arise and check
subsequent payment to creditors after year end.
• Review aging listing for recoverability of long outstanding balances and check
payment history of debtors.
• Consider write off bad and doubtful debts by discussing with client on their
recoverability. Note cases that under legal action.
• Carry out a year and cut-off test to determine whether sales and debtors balances
are recorded correctly and accurately in the proper accounting period.
• Identify and quantify trade debtors’ account with credit balance at year end and
consider reclassifying the credit balances.
• Review credit note issued subsequent to year end and ensure that credits given ae
not in respect.
• Ensure the trade payables are properly disclosed in the financial statement.

Opening balance and
general balance ledgers
agreed to last year trade
receivables.
Review credit note issued
subsequent to year end and
ensure that credits given ae
not in respect.
Identify and quantify trade
debtors’account with credit
balance at year end and consider
reclassifying the credit balances.
Obtain an aging listing of
debtor balance and test Select sample of debtors for
confirmation differences that
balances aging by
arise and check subsequent
comparing amount to sales payment to creditors after year
invoices, and the debtors end.
subsidiary ledgers.
Review aging listing for
recoverability of long
Ensure the trade payables
outstanding balances and
are properly disclosed in
check payment history of
the financial statement. debtors.
Carry out a year and cut-off test
Consider write off bad and
to determine whether sales and
doubtful debts by discussing with
debtors balances are recorded
client on their recoverability. Note
correctly and accurately in the
cases that under legal action.
proper accounting period.