Jasmine Co manufactures motor vehicle components and its year end was 30 June 2008. You are an audit supervisor of Peppermint & Co and the final audit is due to commence shortly. Total assets are $432m and profit before tax is $72m. The following matters have been brought to your attention:

Trade receivables Jasmine Cos trade receivables ledger is comprised of a large number of customers. In previous years, the audit team has undertaken a positive trade receivables circularisation to confirm year-end balances. However, the customer response rate has historically been low and so alternative audit procedures have been undertaken. A decision has been made that for the current year audit a circularisation will not be performed. The year-end trade receivables balance is $39m (2007: $28m) and the allowance for trade receivables is $410,000 (2007: $300,000).

Bank balances The bank and cash figure included in Jasmine Cos draft financial statements is comprised of a number of bank account balances: an overdraft of $51m which is the companys main current account and $02m relating to several savings accounts. The finance director has informed the audit manager that all accounts have been reconciled as at the year end. The overdraft of $51m has increased significantly since the prior year (2007: $12m). The directors have informed you that the overdraft facility, which the company requires in order to operate on a daily basis, is due for renewal in October 2008 and that they are confident it will be renewed.

After reading the above , please answer the following:

Describe some of the substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to the information given above. List and discuss some relevant Analytical Procedures Please consult relevant pages of the book and internet source(s) to know more about the types of Analytical and Substantive Procedures