– Through sequence checking, it‘s possible to verify that all credit customrs dealt with over the accounting period are indeed in the debtors‘ control account since each debtor is sequenced.
– Summary processing. Here the totals of debtors balances are tested for completenessand accuracy by comparing them with the sum calculated in the control accounts.
– Record counts and cash totals will assist to verify whether the debtors balances in the master files tally with final balances in the balance sheet.
– Verify accuracy and completeness of debtors transactions, say on a weekly basis by useof batch totals.
– Given the client deals with customers in transactions not exceeding a certain amount of money e.g. Kshs. 100,000 at a go, programmed check digit verification could be used where a check digit is included in a reference number (the amount in figure) and is arithmetically checked to ensure it bears the required relationship to the rest of the numbers (amounts) and not any in excess.
– Programmed reasonableness checks to check whether there is any transaction with a debtor involving huge amounts of money that could be material.
– Programmed existence checks. Here customers would have codes to identify them uniquely hence this check ensures/verifies existence
Wilfykil answered the question on February 22, 2019 at 09:10
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