Your company is manufacturing glass and glass products in Mabala Industrial area. Mr. Ali, the new auditor who arrived last week to audit the books of accounts of the company did not know how to audit account receivable. He neither checked the account receivable account nor tallied cash account with schedules of account receivable and the subsidiary book. You are in charge of all account receivable in your company and he inquired you about the correctness of books of accounts. Since you did everything correctly, you confidentially told him that account receivable of the company is conforming with the accounting standard. Now Mr Ali, wrote in his report that there is no material uncertainty in account receivable of the company.

Questions:

1. Assume that you are the auditor and Mr. Ali is in charge of account receivable in your company. How will you proceed with the auditing? (2 Marks)

2. What are the duties of an auditor while auditing the books of accounts of the company.?