Auditing ang Assurance Principle

Trade receivables substantive testing: Aged receivables analysis at 31 December 20X7 (amounts in thousand pesos) Reference Customer Name Total Current 30-60 60-90 90-120 120+ days days days days GO01 66 Gems 76 46 25 5 0 0 BOO1 Beautiful Things 0 (24) 0 0 24 0 BOO2 Bianca's 34 0 12 20 0 2 BOO3 Big Watch Company 42 42 0 0 0 CO01 Cassons 12 0 12 0 0 0 DO01 Diamond Factory 45 31 0 14 0 0 E001 Ernst Bones 235 95 67 0 0 73 GO01 Goldensmiths 111 0 0 0 0 111 GO02 Goldstone Silver 11 11 0 0 0 0 HOO1 Hart & Frazzle 9 0 0 9 0 oo JO01 Jatners 21 10 11 0 O 1002 Jewels Rus 156 52 23 34 45 IN 1003 JPM Pickles 419 120 278 21 0 0 0001 Otterstreams 42 4 38 0 0 0 POO1 P Lorrimer 26 0 0 26 o oo P002 Posh Jewels 0 0 0 0 0 SO01 Samhamuel 97 23 24 23 27 O TOO1 The Jewellery Shop 93 93 0 0 0 0 TO02 The Prawnbrokers (154) 0 0 0 o (154) WOO1 WAGS 89 0 9 0 0 WOO2 Watches of Sunderland (9) 654) (645) 0 0 0 WOO3 Wiggy's Gems 4 0 0 0 0 4 W004 Wilson & Kennedy Gems 31 31 0 0 0 0 Tota 1,390 (31) 1,135 152 96 38 Requirements: 1. State and briefly explain three (3) assertions associated with the audit of trade receivables. (3 items) 2. Select four (4) balances that should be included in your trade receivables direct confirmation audit testing. Explain why you have included each of the balances. (4 items) 3 . Apart from direct confirmation, state and explain at least three (3) substantive procedures the auditor should perform on the year-end trade receivables of Shine (3 items)