How would you address a debtor outstanding for 3 years in an audit report?

Question

Accepted Answer

Debtor O/s from 3 years should be investigated thoroughly and disclosed appropriately in the audit report.

Review the aging of the debtor and assess the collectability of the outstanding amount.
Investigate the reasons for the outstanding balance, such as disputes, credit terms, or financial difficulties.
Consider the need for a provision for bad debts if the debt is deemed uncollectible.
Disclose the details of the debtor O/s in the audit report, including the amount, aging, and any provisions made.
Provide recommendations to the client on how to address the outstanding debt and improve their credit control processes.

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