ACCA AA Syllabus D. Audit Evidence - Receivables - Prepayments - Notes ^{4 / 18}

Also prepayments are often not material

Here's some substantive tests for prepayments though:

1. Get the list of prepayments and how they are calculated

2. Check the calculations

3. Use analytical procedures (simple comparison to last year)

4. Review for any obvious omissions or errors