THE IMPORTANCE OF AUDITING AN ENTERPRISE’S RECEIVABLES

Abstract

The article examines the significance of accounts receivable auditing as a crucial tool for assessing an enterprise’s financial condition and ensuring its stability. It notes that the audit of receivables holds particular importance within the enterprise’s financial control and management system, given that their excessive accumulation or untimely repayment can lead to serious financial problems. The primary objective of a receivables audit is to verify the reliability of their formation and repayment processes, covering several critical aspects.
The study substantiates that the management of accounts receivable is associated with various risks that can significantly affect the financial stability of the enterprise, manifesting themselves at different stages of its activity. Furthermore, assessing the solvency of debtors enables minimizing the risks of untimely or incomplete payments, and optimizing the terms of lending to customers. The importance of external confirmation procedures for receivables is highlighted, emphasizing the auditor’s need to pay attention to signs of document falsification, recurring counterparties with dubious reputations, and transactions with abnormal conditions.
It is emphasized that accounts receivable auditing is a core component of effective financial control at an enterprise, enabling the identification of risks associated with debtor non-fulfillment, assessment of debt reality and liquidity, and improvement of the internal control and management system for receivables.
It is concluded that the audit results contribute to increasing financial transparency, the validity of management decisions, and improved financial performance of the enterprise. It is also asserted that current audit approaches to verifying accounts receivable need to be adapted to modern economic conditions. Increased attention to analytical procedures is necessary, along with a broader application of scenario analysis, hypothesis testing, and risk situation modeling methods, which would enable auditors to act proactively. Effective accounts receivable management ultimately requires a systematic approach that includes analysis, planning, control, and active interaction with debtors.