Zyn Bhd manufactures car components and its year end was 31 July 2019 .

Bank balances

The bank and cash figure included in Zyn Bhd's draft financial statement is comprised of a number of bank account balances, an overdraft of RM6 million which is the company's main current account and RM0.3 million relating to several savings accounts. The finance director has informed the audit manager that all accounts have been reconciled as at the year end.

The overdraft of RM6 million has increased significantly since the prior year (2018: RM2 million). The directors have informed you that the overdraft facility, which the company requires in order to operate on a daily basis, is due for renewal in October 2019 and that they are confident it will be renewed.

Trade receivables

Zyn Bhd's trade receivables ledger is comprised of a large number of customers. In previous years, the audit team has undertaken a trade receivables circularization to confirm year end balances. However, the customer response rate has historically been low and so alternative audit procedures have been undertaken. A decision has been made that for the current year audit a circularization will not be performed. The year end trade receivable balance as at 31 July 2019 is RM5 million (2018: RM2.5 million) and the allowance for trade receivable is RM0.5 million (2018: RM0.4 million)

REQUIRED:

a) Describe 6 substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in the relation to Zyn Bhd's bank balances.

b) Describe 6 substantive procedures the auditor should perform to obtain sufficient and appropriate audit evidence in relation to Zyn Bhd's trade receivable.