How would you vouch for Recovery of bad debts written off two years ago.

Auditing and Assurance Revision Questions and Answers

Following procedures will be followed:

 Ensure that recovery pertains to bad debts properly written off in earlier years and the decision for writing off of bad debts was recorded properly.

 Ascertain total bad debts and see whether all recovery of bad debts is recorded properly in the books of account and deposited into bank.

 Check all notifications from court or bankruptcy trustee and all correspondence from debtors and collecting agencies.

 Check credit manger‟s files for amount recovered and confirm acknowledgment receipts issued to trustees/ debtors.

 If amount recovered is material, ensure that proper disclosure has been made in the financial statements.

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