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Procedures

Receivables

8.1 Key assertions

 Existence

 Valuation

8.2 Sources of evidence

 Aged receivables listing

 Sales invoices

 Goods despatch notes

 Receivables confirmation letter

 Cash book / bank statements

8.3 Key areas to consider

 Recoverability of debts

 External confirmation of balances

 Credit balances on the receivables ledger

 Returns / credit notes issued post year-end

 Prepayments

Illustrations and further practice

Now try TYU 4 in Chapter 8

Look at Illustration 3 in Chapter 8 for an example of a receivables confirmation
letter.

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