what are your next steps to audit the file of problem customers– What are the risks with the problem...

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what are your next steps to audit the file of problem customers– What are the risks with the problem customers?- What tests would you consider doing- What assertions are you verifying

Sandeep · Accepted Answer

AUDITING OF PROBLEM CUSTOMERS FILE
Ans 
Audit file of problem customer:
Check the authenticity of the data by reconciling the Invoice details with Ageing file.
Sales revenue was recorded in same period that the title of goods passed to customers (Matching Principle).
Asses the timing of revenue recognition on test basis by examining few sample invoices for earning manipulations (if any).
Audit the Credit notes and policy regarding the same.
Understand the company policy regard to declaring them Problem customer and time period to declaring them.
Risk with the Problem Customer:
Is there a risk of Material Misstatement and detection risk posed by such client?

what are your next steps to audit the file of problem customers – What are the risks with the problem customers? - What tests would you consider doing - What assertions are you verifying

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