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RECEIVABLES CIRCULARIZATION AS EVIDENCE by Rohan Chambers1. Introduction Confirmations (circularization) represent an external source of evidence provided in support of the assertion of existence
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How to fill out receivables circularisation as evidence

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How to fill out receivables circularisation as evidence

01
Step 1: Obtain a list of all receivables that need to be circularised.
02
Step 2: Prepare a circularisation letter or form that includes all the necessary information.
03
Step 3: Send the circularisation letter or form to the intended recipients, along with a deadline for response.
04
Step 4: Follow up with reminders to those who have not responded within the given deadline.
05
Step 5: Receive the responses from the recipients and verify the accuracy of the information provided.
06
Step 6: Analyze and evaluate the responses to identify any discrepancies or potential risks.
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Step 7: Document the results of the circularisation process in the receivables file as evidence.

Who needs receivables circularisation as evidence?

01
Audit firms and auditors who are conducting financial audits.
02
Companies that want to strengthen their internal control systems.
03
Creditors and lenders who want to verify the accuracy of the reported receivables.
04
Investors and shareholders who need assurance about the financial health of a company.
05
Regulatory bodies or agencies that require companies to provide evidence of receivables.

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Receivables circularisation as evidence is a process of confirming the validity of accounts receivable balances by directly contacting customers to verify the amounts owed.
Companies and organizations that are subject to financial auditing are required to file receivables circularisation as evidence.
To fill out receivables circularisation as evidence, companies need to send out confirmation letters to customers requesting verification of their account balances and following up on responses.
The purpose of receivables circularisation as evidence is to provide external auditors with assurance that the reported accounts receivable balances are accurate and valid.
The information reported on receivables circularisation as evidence typically includes customer names, account balances, confirmation dates, and any discrepancies found.
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