Question 4b ii
Marking Guide
| up to 1 mark per well described procedure | |
receivables | |
| – for non-responses arrange to send a follow up circularisation | |
| – with the client’s permission, telephone the customer and ask for a response | |
| – for remaining non-responses, undertake alternative procedures to confirm receivables | |
| –for responses with differences, identify any disputed amounts, identify whether these relate to timing differences or whether there are possible errors in the records | |
| – cash in transit should be vouched to post year-end cash receipts in the cash book | |
| – review receivables ledger to identify any possible mispostings | |
| – disputed balances, discuss with management whether a write down is necessary | |
| max marks | 5 |