Referring to the given information, please formulate the substantive audit procedure that could be performed to verify that accounts receivable balance is valued correctly at the end of the year.

ACCOUNTS RECEIVABLE (Required 4) Sales are made on a cash or credit. Each customer should complete a customer registration form in order for their profiles to be loaded onto the system. Registration forms for customers buying on credit should also be accompanied by a credit application. Credit is only approved after a successful credit background check has been done after which a credit limit and specific credit terms are set for each customer. Accounts due should be settled within a thirty-day period and if not paid within sixty days, the customers are handed over to debt collectors. The following age analysis has been obtained at year end: Total Closing balance R6 500 000 Percentage of total debtors Current R3 185 000 49% More than 30 Days R1 314 800 20% More than 60 days R 455 000 7% More than 90 More than 120 days days R 180 200 R1 365 000 3% 21% An allowance for credit losses is made against a customer if the account has not been settled within 90 days. Included in the outstanding balance for more than 120 days are debtors that have entered into business rescue proceedings and some who have been liquidated. You obtained the accounts receivable list with the amount due by each debtor, accounts receivable control account and positive debtors confirmation letters (responses received back from the debtors for the year ended 30 September 2021). You have already performed all the applicable analytical procedures on the debtors' accounts. ACCOUNTS RECEIVABLE (Required 4) Sales are made on a cash or credit. Each customer should complete a customer registration form in order for their profiles to be loaded onto the system. Registration forms for customers buying on credit should also be accompanied by a credit application. Credit is only approved after a successful credit background check has been done after which a credit limit and specific credit terms are set for each customer. Accounts due should be settled within a thirty-day period and if not paid within sixty days, the customers are handed over to debt collectors. The following age analysis has been obtained at year end: Total Closing balance R6 500 000 Percentage of total debtors Current R3 185 000 49% More than 30 Days R1 314 800 20% More than 60 days R 455 000 7% More than 90 More than 120 days days R 180 200 R1 365 000 3% 21% An allowance for credit losses is made against a customer if the account has not been settled within 90 days. Included in the outstanding balance for more than 120 days are debtors that have entered into business rescue proceedings and some who have been liquidated. You obtained the accounts receivable list with the amount due by each debtor, accounts receivable control account and positive debtors confirmation letters (responses received back from the debtors for the year ended 30 September 2021). You have already performed all the applicable analytical procedures on the debtors' accounts