Question 1d
Marking Guide
receivables circularisation procedures | |
| 1 mark per procedure | |
| (i) procedure | |
| – list of receivables | |
| – sampling method | |
| – select balances for testing | |
| – extract details from ledger | |
| – prepare letters – client sign | |
| – post letters | |
| – choose date if not year end | |
| – confirm with management can circularise receivables | |
| – other relevant points | |
| maximum marks | 5 |
| specific receivables for selection - 1 mark each explained point (must include reason for selection for full mark) | |
| – negative balances | |
| – material balances | |
| – $0 to $20,000 balances | |
| – old balances | |
| – random sample remaining balances | |
| – other relevant points | |
| maximum marks | 5 |