You are planning the audit of receivables of Grain Ltd. Grain Ltd is referred to as an established client, and you attended the previous audit. Grain Ltd has a significantly large sales ledger and also it has been determined that there is a high sample size for the audit of receivables.

In previous financial years, receivables have not been circularized and Grain Ltd has requested that you do not circularize receivables. Receivables of Grain Ltd are considered to be of low risk because customers usually pay promptly. This financial period, Grain Ltd had a very long running dispute with one customer Raul Ltd, about the quality of goods that were supplied to them.

Raul Ltd is threatening to find another supplier if the quality problems at Grain Ltd are not resolved anytime soon. Required:

Set out in a manner suitable for inclusion in the audit plan, the audit procedures to be undertaken to ensure that the receivables balance of Grain Ltd is fairly stated in the statement of financial position.