4 Aberdeen Textiles Aberdeen Textiles, a listed company, manufactures knitted clothes and dyes these clothes and other textiles. You are carrying out the audit of the accounts of the company for the year ended 30 September 2022, which show a revenue of about $10m and a profit before tax of about $800,000. You are attending the final audit in December 2022 and are commencing the audit of trade accounts receivables, which are shown in the draft accounts at $2,060,000. The interim audit (tests of controls) was carried out in July 2022, and it showed that there was a good system of internal control in the sales system and no serious errors were found in the audit tests. The company's sales ledger is maintained on a computer, which produces at the end of each month: (i) (!!) A list of transactions for the month An aged list of balances Required (a) Open item statements which are sent to customers (open item statements show all items which are outstanding on each account, irrespective of their age) List and briefly describe the audit tests you would carry out to verify trade accounts receivable at the year end. You are not required to describe how you would carry out a direct confirmation of receivables. (10 marks) (b) Describe the audit work you would carry out on the following replies to a receivable circularisation: (i) (!!) (!!!) (iv) Balance agreed by customer Balance not agreed by customer Customer is unable to confirm the balance because of the form of records kept by the customer Customer does not reply to the confirmation letter (10 marks) (Total 20 marks)