A receivable audit tests whether amounts due from customers are genuine, recoverable and correctly recorded. It often accompanies a stock audit for banks.
Scope of service
- Balance confirmations
- Ageing analysis
- Review of credit limits and approvals
- Provisioning for doubtful debts
- Book debt statement verification for banks
Regulatory framework
- Bank sanction terms, where applicable
- Ind AS 109 expected credit loss, where applicable
Typical professional activities
- Confirmation circularisation
- Subsequent receipts testing
- Report and recommendations
Applicable industries
Relevant articles and resources
The information on this page describes the nature of the service. It is not advice on any specific matter. See the disclaimer.