Discuss the requirements that the audit junior should meet when external confirmations are obtained as audit evidence.(6)

SALES AND TRADE DEBTORS (Required part 2) The e-mail below represents correspondence from the audit senior (you) to the audit junior regarding the audit of credit sales and trade debtors: Date: 26 August 2020 From: You (Audit senior) To: Kerry Ncube (Audit junior) Subject: Audit of credit sales and trade debtors Good day colleague The CFO at Eco-Muhle has provided us with information for the audit of credit sales. All sales at Eco-Muhle are on credit and Eco-Muhle utilises an automated sales system. Their main customers include both state and private hospitals, wholesalers and pharmacies. I have received some information from the CFO that you may use to begin the audit on credit sales and trade debtors. These include: an extract of the sales and trade receivables disclosures in Eco-Muhle's financial statements and trial balance for the current and financial year end a list of trade debtors as at 31 July 2020 contact details of a random selection of trade debtors identified by the CFO Activate Windo Go to Settings to acti Eco-Muhle's budget for the current financial year As previously discussed, we intend to use a combination of tests of detail and substantive analytical procedures to obtain audit evidence of Eco-Muhle's sales for the current financial year. I suggest we use the contact details of the trade debtors provided and send out positive external confirmations. The CFO has insisted we make use of their debtor's clerk to send and receive the external confirmations, as he is already familiar with the debtors and can expedite the process. PS: The debtors clerk has already designed a suitable confirmation request which we can use. Regards You (Audit senior) [TURN OVER] SALES AND TRADE DEBTORS (Required part 2) The e-mail below represents correspondence from the audit senior (you) to the audit junior regarding the audit of credit sales and trade debtors: Date: 26 August 2020 From: You (Audit senior) To: Kerry Ncube (Audit junior) Subject: Audit of credit sales and trade debtors Good day colleague The CFO at Eco-Muhle has provided us with information for the audit of credit sales. All sales at Eco-Muhle are on credit and Eco-Muhle utilises an automated sales system. Their main customers include both state and private hospitals, wholesalers and pharmacies. I have received some information from the CFO that you may use to begin the audit on credit sales and trade debtors. These include: an extract of the sales and trade receivables disclosures in Eco-Muhle's financial statements and trial balance for the current and financial year end a list of trade debtors as at 31 July 2020 contact details of a random selection of trade debtors identified by the CFO Activate Windo Go to Settings to acti Eco-Muhle's budget for the current financial year As previously discussed, we intend to use a combination of tests of detail and substantive analytical procedures to obtain audit evidence of Eco-Muhle's sales for the current financial year. I suggest we use the contact details of the trade debtors provided and send out positive external confirmations. The CFO has insisted we make use of their debtor's clerk to send and receive the external confirmations, as he is already familiar with the debtors and can expedite the process. PS: The debtors clerk has already designed a suitable confirmation request which we can use. Regards You (Audit senior) [TURN OVER]