Auditing

Sending debtor’s confirmation letters

Reviewing subsequent collection

Verify debtors against sales document

Both (a) and (b)

may be eliminated for an account balance under certain conditions

are designed to discover significant subsequent events

will increase proportionately when the auditor decreases the assessed level of control risk

may be test of transactions, test of balance and analytical procedures

it should offer constructive and timely suggestions to the management

it should not point out mistakes

it should not be based on factual information

it should not be based on balance sheet

Sales ledger personnel

Teller/cashier

Cash officers

Operations manager

ensure presence of somebody from management

obtain a receipt from custodian as to its return

ensure postage and revenue stamps are not counted in physical count

temporary advances to employees are counted to calculate balance of cash in hand