Stock Wr|te off

normally sLocks are wrlLLen off because lL ls obsoleLe explred and damaged
WhaL we audlLors have Lo do ls Lo verlfy wheLher Lhe sLocks wrlLLen off are properly and
correcLly done
lf Lhe sLocks wrlLLen off value are low Lhen lL's noL rlsky
lf Lhe sLocks wrlLLen off value are hlgh Lhe rlsk ls LhaL cllenL may dlsLracL us LhaL Lhe sLocks are
acLually noL obsoleLe damaged or explred and ln reLurn sell Lhe sLocks Lo Lhe markeL for half
prlce and Lhe revenue earn ls dlrecLly lnLo hls accounL
AnoLher rlsk for sLock wrlLLen off ls LhaL sLocks are wrlLLen off Lo pull down Lhe company's proflL

1rade ayab|es and 1rade kece|vab|es
We musL check on subsequenL paymenLs and collecLlons Lo lndenLlfy wheLher lL ls able Lo pay
and collecL Lhe debLs
We musL check on unpresenLed cheque Lo deLermlne wheLher ls Lhe lnLernal conLrol problem or
Lhe company ls noL able Lo pay
Cheque normally can lasL only up Lo 6 monLhs