Beautiful Inc manufactures womens clothing and its year end was 31 July 2017. You are an audit supervisor of ABC Inc and the year-end audit for Beautiful Inc is due to commence shortly.

The draft financial statements recognize profit before tax of $2.6m and total assets of $18m. You have been given responsibility for auditing receivables, which is a material balance, and as part of the audit approach, a positive receivables circularization is to be undertaken.

At the planning meeting, the finance director of Beautiful Inc informed the audit engagement partner that the company was closing one of its smaller production sites and as a result, a number of employees would be made redundant. A redundancy provision of $110,000 is included in the draft financial statements.

Required:

Describe substantive procedures, other than a receivables circularization, the auditor should perform to verify EACH of the following assertions in relation to Beautiful Incs receivables:

(6 points)