Adam James is responsible for the audit of Paperwate Stationery Supplies Limited. The company is a specialist printer of business stationery and has over 1000 clients throughout South Australia and Victoria. Accounts receivable records are maintained on the company's computer system. Adam is planning the audit of accounts receivable at year-end, and is keen to use the audit firm's computer audit specialist to assist him in achieving the balance-related audit objectives.

The company's accounts receivable computer master file contains the following information:

• Customer code (account number)

• Customer name

• Customer mailing address

• Records (details) of all unpaid invoices at the beginning of each month; each invoice record contains the invoice number, date and invoice amount

• Records of all sales invoices issued during the current month, showing invoice number, date and invoice amount

• Records of all cash receipts during the current month, showing

• Records of all journals issued during the month (for example, sales returns and allowances, and other adjustments) showing journal number, date of journal, and entry amount (debit or credit)

• Credit limit

• Location code (Code 3 for Victoria and Code 5 for South Australia)

• Date of last sale

• Date of last receipt

• Credit manager code (Code X-don't extend further credit; Code C-account is in the hands of the collection agent).

REQUIRED

Provide details of how Adam could use the firm's computer audit specialist to prepare a computer program (using the data in the master file above) to assist him in the audit of the accounts receivable balance of Paperwate at year-end.