Pre and Post Audits
In recent years the rules of audit have been tightened in response to widely reported scandals, like Enron, that concerned the overstating of revenue. This tightening of regulations can also attract your auditor’s attention to the prudence of your bad-debt provision, with much emphasis placed on the efforts you’ve made to collect your account receivable asset.
Any comprehensive credit control policy should include the escalation process that you have in place to secure your accounts receivable. Therefore, in addition to your own in-house efforts, auditors can be expected to look for the use of third-party escalation as part of your credit policy.
Your auditor will want to see your accounts receivable, and DSO, in good condition and, as a result, will expect your write-off recommendation to reflect this. So, whether you are pro-actively preparing for your audit, or re-actively responding to it, we can collect your accounts and earn you a clean bill-of-health.
