Down Market Department Stores plc sells a high proportion of their merchandise on extended credit. The system for dealing with such credit sales is highly organized and well controlled. The Receivables Ledger is kept on a specially designed computer system. The Receivables of the company at 30 September 202X appear in the accounts at £4.6m out of gross assets of £19.3m.

Discussion
– What assertions are the directors implying in stating the Receivables at £4.6m?
– What possible misstatements could occur?
– What varieties of evidence may be collected about this current asset?
– What basic techniques for collecting evidence can be applied to the item?