Question 1d ii
Marking Guide
| up to 1 mark | per well described substantive procedure |
| release of $1·5 million allowance for receivables | |
| – discuss with the finance director rationale for not providing against any receivables | |
| – review aged receivable ledger to identify any slow moving or old receivable balances, discuss with the credit controller | |
| – review after date cash receipts for slow moving/old receivable balances | |
– review customer correspondence to identify any balances in dispute or unlikely to be paid | |
| – review board minutes to identify any significant concerns in relation to payments by customers | |
| – calculate the potential level of receivables which are not recoverable and assess if material or not | |
| (maximum 3 marks) |