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Impt and urgent

sweety (ceo) (59 Points)

20 November 2014

friends need help
debtor confirmation not possibe and the amount is material. now how to confirm the balance..?? can't disclaim the opinion. pl guide

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4 Replies

CA AnKiT BoHrA (AB) (Manager) (25955 Points)
Replied 20 November 2014

why not possible

if not possible then u cant confirm it perfectly without consulting the third party.. only u can check the bills and bank details....

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Deepesh Varshney (CA Firm) (44 Points)
Replied 20 November 2014

Hi sweety,

in my opinon, if the debtor is not sending its confirmation & it is not aged (like more than 1 year, 180 days, 90 days etc... depending upon the business model of the company) then u can go for alternate testing like subsequent collection, & if the same is not collected till the date of opinion, then at last u can take comfirt from POD testing of the revenue billed to that customer. & If the customer is more than the normal ageing, than u should ask client to provide the reason for the non collection, if you are satisfied with the reason then its ok other wise insist client to make the provision for the same.

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sweety (ceo) (59 Points)
Replied 21 November 2014

thank u friends. the debtor is not responding and the amount is material, it cannot be ignored

Deepesh Varshney (CA Firm) (44 Points)
Replied 21 November 2014

Ya if debtor is not responding then you can change the audit procedure like which i have written in the earlier reply, means - Debtor alternate testing & if not collected till date then POD (proof of deleivery) testing billed to that customer, beyond that you can not go......

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