DC 11-6 Receivables Audit Procedures. The ABC Appliance Company, a manufacturer of small electrical appliances, deals exclusively with 20 distributors situated throughout the country. At December 31 (the balance sheet date), receivables from these distributors aggregated $875,000. Total current assets were $1.3 million. With respect to receivables, the auditors followed the procedures outlined below in the couOof the annual audit of financial statements: 1. Reviewed the system of internal control and found it to be exceptionally good. 2. Reconciled the subsidiary and control accounts at year-end. 3. Aged the accounts -none were overdue. 4. Examined detailed sales and collection transactions for February, July, and November, 5. Received positive confirmations of year-end balances Required: Criticize the completeness or incompleteness of the above program, giving reasons for your recommendations concerning the addition or omission of any procedures. (o 2000, American Institute of CPAs. All Rights Reserved. Adapted by permission)