Analytical Review Procedures Auditing

Analytical Review Procedures Auditing for Debtors Outstanding

Analytical Review Procedures:-

At each period end (i.e. quarterly, six monthly etc.) the Department should carry out division wise and segregating individual / commercial sale, the following analytical review procedures:

  • A comparison of the relationship between current year debtor balances and the current year sales with the corresponding figures for the previous period after due consideration of the company’s credit policy. 
  • Comparison of the current year’s ageing schedule with the corresponding figures for the previous period. 
  • Comparison of the debtor’s turnover ratio with the same for the preceding period. 
The Sales & Marketing Department can use following reports generated from the ERP for the purpose of analytical review and monitoring of collection efficiency:

  • AR Ageing Report by Due Date 
  • AR Ageing Report by Invoice Date 
  • Customer Statement. 


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