You are a third year audit trainee at REKP Inc., a local medium-sized audit firm in Mbombela. You are currently busy with the 31 January 2020 year-end audit of the Mbombela branch of Cheecken Leecken Ltd (hereafter Cheecken Leecken), a South African fast-food fried chicken restaurant chain. Their products cater to the tastes of the local population and is positioned as a more affordable option than its main competitors in South Africa. Their most popular product is the hot wings. All of Cheecken Leeckens debtors at the Mbombela branch consist of companies and businesses in the surrounding area, that buys their employees lunches from the Mbombela branch on credit on a daily basis, which is then paid at the end of each month. All of these credit sales orders are placed with the order clerk in the receiving customer orders function. The rest of the sales takes place at the cashiers and consist of cash sales to individual walk-in customers. Together with a few other trainees, you are responsible for the audit of total credit sales of R240 892, total debtors of R110 287 and total inventory of R98 521 of the Mbombela branch.

Outstanding task 3 All of the other trainees have forgotten about the accuracy, valuation and allocation assertion relating to debtors for the allowance of credit losses and the audit manager has requested that you perform these outstanding procedures.

Required:

With reference to outstanding task 3: Describe the substantive audit procedures that you would perform to confirm the accuracy, valuation and allocation assertion of the allowance for credit losses for the 31 January 2020 year-end. Your answer should include any Computer Assisted Audit Techniques (CAATs)