(d) Audit of year end credit card receivable
– Agree the balances on each credit card company’s ledger account to the list of receivables.
– Cast the list of receivables and agree the total to the total on the receivables ledger control account.
– For the last day of the financial year and the first day of the new financial year, agree total sales income from ticket office records to the cash book and receivables ledger ensuring they are recorded in the correct period.
For a sample of material balances and a random sample of immaterial items,
– Obtain direct confirmation from the credit card company of the amount due to B-Star using a receivables confirmation letter.
– Where direct confirmation is not possible, obtain evidence of cash receipt after the end of the financial year. Agree the amount on the bank statements post year end of B-Star to the amount due in the receivables ledger (less any commission due).
– Review after date sales day book for debit notes indicating that sales may have been overstated in the prior year.
– Obtain the financial statements of B-Star and ensure that the receivables amount is disclosed as a current asset net of commission due to the credit card companies.
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