AUDIT PROGRAM FOR RECEIVABLES

Client’s Name: Grace Corporation

Staff In-Charge: XMC
Audit In-Charge: Cluster AAA
Year-End Audit Date: December 31, 2019
AUDIT OBJECTIVES AND AUDIT ASSERTIONS
1. Audit Objective: To determine that all receivables exist and represent bonafide obligations
owed to the company as of balance sheet date.
Audit Assertion: Rights and Obligations
2. Audit Objective: To determine that all transactions relative to receivables have been recorded
in the proper accounting period.
Audit Assertion: Completeness
3. Audit Objective: To determine that receivables are recorded and presented at proper amounts
in accordance with PAS/PFRS.
Audit Assertion: Valuation and Allocation 4.
Audit Objective: To determine that receivables are properly presented and classified in the
balance sheet.
Audit Assertion: Presentation and Disclosure
Audit Procedures Done by Date Done Reviewed by
1. Perform analytical procedures XMC
2. Confirm receivables with XMC
debtors.
3. Obtain a schedule of aged trade XMC
accounts receivable balances from
subsidiary ledger.
a. Foot and cross-foot the list.
b. Determine if it reconciles
with the general ledger
control account.
c. Trace individual balances
to the subsidiary ledger.
 d. Test the accuracy of aging.

4. Test cutoff of sales and sales XMC

returns to determine whether
receivables are recorded in the
proper accounting period.
5. Review collectability of XMC
receivables and determine the
adequacy of allowance for
doubtful accounts.
6. Recalculate interest arising from XMC
trade receivables and other
receivables
7. Ascertain whether some XMC
receivables are pledged, factored,
assigned, or discounted.
8. Recalculate the receivables and XMC
ascertain that the receivables are
properly valued as required by the
relevant PFRS.
9. Determine if the receivables XMC
presented in the financial
statements and disclosures are in
accordance with PFRS.