| ID: 1.001 |
| Check field: 01 – Accounts receivable accounting |
| Name: Age structure analysis / overdue receivables |
| Status reason: Active |
| Problem: The recovery of overdue receivables depends very much on when the receivables are identified and appropriate measures are initiated. It can be statistically proven that the earlier conspicuous receivables are identified, the greater the recovery success. oktant supports both the accounts receivable management and the auditor within the framework of a digitalisation strategy by means of several sophisticated audit procedures. |
| Description: Within the scope of this audit action / analysis, the overdue receivables are analysed according to their age. The following parameters are to be determined for this: – Overdues greater than (in percent): The parameter refers to the exceeding of the payment target, i.e. the difference between the due date and the document date. – Overdues greater than (in days): The parameter refers to the difference from the due date. – Materiality: An amount is to be specified that the balance is to exceed. Materiality refers to the absolute amount. |
| Combination with audit procedures: Due to the overview the auditor obtains of the accounts receivable and their structure through this audit procedure, it supports the risk analysis required by the IDW auditing standard. This audit procedure can also be included in an ICS audit of accounts receivable management during the year as a functional test. As a dual purpose test, these audit procedures can also be used as an individual case audit. Thus, the auditor already obtains considerable security in the area of accounts receivable during the year. |
| Savings potential main audit: This results in considerable savings potential for the main audit with regard to practically all audit objectives. In combination with the other oktant audit actions in the accounts receivable area, the effort during the main audit should be reduced to a minimum. |
| Credits: On the base of this information, the auditor can pick out problem cases directly, regularly and on the basis of reliable information with the company through a continuous auditing approach and bring about their clarification already during the year. In this way, the auditor ensures a high audit quality and the company has a chance of successful recovery. |
