1. Obtain AR aging as at December 31, 2015, test recalculation and agree balance per AR aging to general ledger.
2. Test the accuracy of AR aging by selecting the invoices by 1 item per each age and trace to the supporting documents to ensure that AR aging is calculated based on credit term and AR outstanding is presented and classified in proper aging.
3. Test the completeness of AR aging by comparing the accounts receivable balance between AR aging and general ledger. We also perform dual purpose testing for test of controls over the revenue business process, we traced the selected invoices to general ledger and AR aging.
4. Evaluated the result of testing.