Accounts Receivable Confirmations

[jacq]

Hi all

Can anyone advise what alternative procedures can be carried out to validate AR figures when there is no reply to the circularisation letters sent to customers please?

Many thanks :confused:

[dragoon_alex]

Hi all

Can anyone advise what alternative procedures can be carried out to validate AR figures when there is no reply to the circularisation letters sent to customers please?

Many thanks :confused:

Firstly auditor need make a phone call to ensure the address is correct.

them, send another circularisation.

If still no reply, them auditor have two choice, if there have got other evidence to prove the cridit, them auditor can send a negative circularisation, and keep the copy of circularisation as evidence.

However, if don't have further evidence to prove, audit need ask a manager representation letter, and disclose it in the audit report.