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Mtindi Limited buys milk from dairy farmers, processes the milk and delivers them to retail outlets. You are currently auditing the receivables system and determine
Mtindi Limited buys milk from dairy farmers, processes the milk and delivers them to retail outlets. You are currently auditing the receivables system and determine the following information. (1) The company employs 60 drivers each responsible for delivering milk to customers. Each driver delivers milk to between 20 and 30 shops on a daily basis. Receivables normally amount to approximately TZS. 3,600,000. Payments by customers are not normally made to the drivers but are sent directly to the head office of the company. (2) The sales ledger is regularly reviewed by the office manager who prepares a list for each driver of accounts with 90 days balance or older. The list is used for the purpose of intensive collection by the driver. Each driver has a delivery book which is used for recording deliveries of milk and those receivables with 90 days balance (3) The audit program used in previous audits for the selection of debtor balance for direct confirmation stated 'Select two accounts from each driver's customers and to ha
Mtindi Limited buys milk from dairy farmers, processes the milk and delivers them to retail outlets. You are currently auditing the receivables system and determine the following information. (1) The company employs 60 drivers each responsible for delivering milk to customers. Each driver delivers milk to between 20 and 30 shops on a daily basis. Receivables normally amount to approximately TZS. 3,600,000. Payments by customers are not normally made to the drivers but are sent directly to the head office of the company. (2) The sales ledger is regularly reviewed by the office manager who prepares a list for each driver of accounts with 90 days balance or older. The list is used for the purpose of intensive collection by the driver. Each driver has a delivery book which is used for recording deliveries of milk and those receivables with 90 days balance (3) The audit program used in previous audits for the selection of debtor balance for direct confirmation stated 'Select two accounts from each driver's customers and to ha
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