Torres Leisure Club Co (Torres) operates a chain of health and fitness clubs. Its year end was 31 October 2014.

You are the audit manager and the year-end audit is due to commence shortly. The following matter has been brought to your attention. Torres’s trade receivables have historically been low as most members pay monthly in advance. However during the year a number of companies have taken up group memberships at Torres and hence the receivables balance is now material. The audit senior has undertaken a receivables circularisation for the balances at the year end; however, there are a number who have not responded and a number of responses
with differences.

Required:
Describe substantive procedures you would perform to obtain sufficient and appropriate audit evidence in relation to Torres’s trade receivables. (6 marks)