Develop an expectation of rentals receivable at the period end disaggregated to the [appropriate level]. Base expectation on key factors and relationships [such as volume of new business and leasebook at the prior period end, periodicity of rentals and changes in average rental. Also consider payment terms agreed with customers and the possible impact of changes in payment terms.]
Assess the reliability and appropriateness of data used to set expectation.
Calculate the expected amount.
Set the acceptable difference.
Compare the recorded amount with expectation and investigate differences that fall outside the range of acceptable difference through inquiry of management. Obtain appropriate evidence to corroborate managements explanations.
Revise expectation and acceptable difference if appropriate and compare the revised expectation with the recorded amount.