Eagle View Company

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Test of Controls D-4

To: The files
From: Team 9 Auditors, Rubin and Lewis, PC
Date: November 24, 2019

 Do you have any general concerns regarding the accounts?

First, whether or not the balance of account receivables is accurate? Are there any mistakes or omitted
items?
Second, whether or not allowances for bad debts are reasonable ?
Third, whether or not the company’s current credit policies are reasonable?
Fourth, what is the percentage of credit sales in the company’s total sales?

 Do you have any specific concerns regarding collectability?

First, who are main customers of the company?

Second, what are proportions of account receivables in the company’s total accounts receivables?

Third, how long the average days of collecting receivables are?

Fourth, are there any significant uncollectable receivables?

Communication Memo D-4 1