How Do I Choose the Best Accounts Receivable Audit Program?

Accounts receivable refers to the debts formed by an enterprise for the sale of goods, products, or the provision of labor services. Transportation and miscellaneous expenses are various types of debt assets formed by enterprises in their credibility activities. Accounts receivable audit is a very important content in corporate financial audit. Strengthening the audit of accounts receivable of enterprises is one of the main contents of doing a good job of auditing assets, liabilities, and profits and losses. This is of great significance for accelerating the turnover of funds, reducing capital occupation, increasing capital utilization, and promoting asset preservation and appreciation.

Accounts receivable audit

Right!

1. Identify the audited unit

(1) Obtain or prepare a detailed account receivables list, review and add correctly, and match the number of statements, total accounts and detailed accounts

(2) Analysis

Can't take it back

Establish management

Accounts receivable audit deficiencies

1. The detailed account balance of an enterprise's "accounts receivable" may not be generated by a single business, but may be "accumulated" by several businesses in a relatively long period of time. Therefore, the simple aging division may not reflect the time when the accounts receivable actually occurred.

2. The current aging analysis method of "accounts receivable" does not take into account the provisions of the debtor's payment time in the sales contract. In actual work, the sales contract (agreement) concluded between the audited entity and the debtor may stipulate that the debtor's payment period is relatively long (more than 1 year or even longer payment period). Before the contract expires, the receivables involved in the sales contract There are no problems with the accounts.

3. Litigation limitation of accounts receivable for more than 2 years has not been the focus of audit attention. China's civil law stipulates that the effective protection period of a creditor's right is 2 years. If the creditor cannot provide valid evidence to prove the validity of the creditor's right, the creditor will bring a civil lawsuit to the court, and the court will not accept it. In fact, claims over 2 years become bad debt losses.

Receivables audit improvement

When internal auditors carry out the audit of accounts receivable, in addition to using the review method to check whether the detailed account receivables of the audited unit are set up according to the requirements of the enterprise accounting system, the calculation and analytical review methods are used to correspond to the accounts receivable In addition to the evaluation of the balance, the proportion of total current assets, and the receivable turnover rate, the following two audit methods can be used to check the specific audit objectives of the receivables:

1. Calculation and analysis method: Starting from the actual overdue time of each account receivable, calculate and analyze the age of the overdue accounts receivable, and calculate the accounts receivable in each overdue period as the total overdue accounts receivable. proportion. During the audit, the overdue period shall be divided into: less than 1 year, 1 to 2 years, and more than 2 years. Recalculation was adopted to check the correctness of the provision for bad debts.

2. "Non-performing assets" identification method. Internal auditors identified the receivables of the audited unit as "non-performing assets". The more accurate recognition standard was the debtor's payment time stipulated in the sales agreement entered into between the audited unit and the debtor. When receivables are identified as non-performing assets, the recognition method shall be adopted on a case-by-case basis.

The letter of credit method is used to check the authenticity of accounts receivable. Due to the impact of audit time and the degree of cooperation of the debtor, the response rate is low and the audit efficiency is low. Therefore, internal auditors need to give due consideration to the issue of limited use of corroboration methods when applying them.

In addition, internal auditors also need to focus on whether accounts receivable that have been fully accrued for bad debts are prepared for inspection and registration in accordance with the requirements of the enterprise accounting system, whether they have been recovered, and whether the accounting treatment of the recovered part is in compliance with the enterprise accounting system.