Since yesterday I have completed the payroll test for Pyrm, so today I planned to focus on another CAATs test, which is the account receivable aging test. Firstly, I looked at the account receivable aging summary prepared by the company.
One thing I noticed is for the range of period, besides the range like 1-30 days, and 31-45 days, it has another column called ‘current’, after I asked my senior, I then know that the column of current is to record the amount that has not yet due on the last day of the financial period, for example, the due date of invoice A is on the January of 2023 while the financial period of the company is ended on 31 December 2022, so the amount of the invoices will be grouped into the range of ‘current’.
Hence, for my calculation, I need to modify the formula to ‘=IF(AND(Aging days<=0), Amount in due, 0)’, meaning if the aging days are less than zero, then the figures will be classified to the ‘current’ field. It is noted that in this case, the aging days are the difference between the due date with the cut-off day or the last day of the financial period.
Main things that I have learned
-Learn how to prepare an account receivable aging test if the range of ‘current’ is used
Comment/idea/opinion
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