G) The credit controller of Fashion Designers Ltd has provided you with an aged debtor’s trial balance as at 30 November 1993. There are over 5000 individual accounts distributed over a wide range of values. The system of internal control over debtors has been assessed as satisfactory and reliable.
1) What audit objectives would you be concerned with in testing the trade debtor’s balance?
2) Describe the steps that you would include in an audit program to test the trade debtors balance as at 30 November 1993.
3) What further testing would you perform as at year end?
4) What analytical review procedures could be used to examine the possible overstatement or understatement of the provision for doubtful debts?
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