Page 20 - eBook Audit Of Financial Statement Components

There are two main procedures to be performed when the

confirmation is not effective:

• Examine subsequent collections
The receipt of payment from customers is the best

evidence for existence and collectability of the debtors'

amount. The remittance advice that accompanies the

cash receipt should be matched with the unpaid invoices

and the outstanding balance.

• Vouch unpaid invoices and supporting documents

constituting debtor balances

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