The term ‘books debts’ suggests particulary amounts recoverable from customers, but in practice it is applied to a wide range of claims which a business may carry as an asset in its books. Advances or loans cannot, however, be included under this head. Verification of debtors may be carried out by employing the following procedures :
- Examination of records;
- Direct confirmation procedure (also known as ‘circularisation procedure’)
- Analytical review procedures.
The nature, timing and extent of audit procedures to be performed is, however, a matter of professional judgement of the auditor.
(Visited 28 times, 1 visits today)