Answer:
Obtain schedule of debit balances in creditors‟ account and pay particular attention to the age of the balances. Also scrutinize the purchase ledger.
Enquiry should be made for long unadjusted outstanding and check as to whether any of them would require provisioning.
Examine that the advances have not been shown as deposits in balances sheet.
Confirmation of balances should be obtained and reconciliation be done in case of any discrepancies.