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We have; 1 The credit risk arises when the amount is overdue and in case of __________, the amount is overdue when the invoice is raised. So, we have accounted for the balances in the buckets (1-90 days) for the calculation of provision on trade debt balances.
Obtained the working of ECL as per IFRS 09 from client. 2 The Company considers trade debts balances in default when debtors are overdue for more than 365 days. Purchase - B (POF) balance amounting to Rs. 7,868,984 has been outstanding for more than 365 days which is not considered in ECL working.
Ensured the amounts with the aging analysis. 3 Error in formula for flow rate calculation.
Ensured the external factors rates used from external source, " www.imf.org".
Recalulated the amount of provision.
Discussed with client ffor any differences.
Day Group 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 30-Mar-22 31-Dec-21 30-Jun-21 30-Mar-21 31-Dec-20 30-Sep-20
Current 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
0 - 30 days 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
31 - 60 days 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
61 - 120 days 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
121 - 180 days 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
181-365 days 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
365 days and above 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789 123,456,789
Gross 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523 864,197,523
Flow rate Average 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 30-Mar-22 31-Dec-21 30-Jun-21 30-Mar-21 31-Dec-20 30-Sep-20
1 - 30 days 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
31 - 60 days 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
61 - 90 days 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
91 - 180 days 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
181-360 days 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
360 days and above 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Conclusion
Based on the results of our tests of recorded balances, we conclude that the above balances are fairly stated in relation to
the Financial Statements taken as a whole.
Audit Ticks:
a Trace to Supporting Documents
n Agreed to prior year working papers
b Traced to Last year Financial Statements
d Traced to General Ledger
e Recalculated