Benefits of Receivables Audit Services in UAE
Verifies True Receivable Position –Through systematic checks, we ensure that your accounts receivable balances are accurate, valid, and fully supported by invoices, contracts, and subsequent collections. This verification reduces the risk of sudden surprises during external audits or financing negotiations.
Reduces Bad Debt Risk – Our audit process identifies overdue accounts and doubtful debts at an early stage. With this insight, you can take corrective measures, strengthen your recovery strategies, and avoid future write‑offs that erode profitability.
Supports Funding Applications – Banks and financial institutions in the UAE frequently require verified receivables schedules before approving loans, trade finance facilities, or factoring arrangements. Our audit reports are structured to meet these requirements, improving your chances of securing financing.
Strengthens Internal Credit Controls – By assessing your credit approval processes, invoicing practices, and collection follow‑ups, we help highlight weaknesses in your receivables management cycle. Stronger controls mean faster collections and lower risk of overdue debts.
Builds Investor & Auditor Confidence – Independently audited receivables give shareholders, external auditors, and potential investors confidence that your working capital position is transparent and reliable — a critical factor for business growth.
Documents Required for Receivables Audit Services in UAE
Detailed Accounts Receivable Ageing Reports – A complete ageing schedule of receivables, showing outstanding balances by customer and broken down by due dates (current, 30 days, 60 days, 90 days, etc.), is essential. This allows auditors to analyse which receivables are recoverable, which are overdue, and where risks of default may exist.
Customer-Wise Balance Confirmations – Whenever possible, direct confirmations from customers are obtained to verify the accuracy of outstanding balances. These independent confirmations are critical for proving that receivables are genuine and valid.
Sales Invoices, Delivery Notes & Purchase Orders – Copies of invoices raised on customers, delivery notes signed upon receipt of goods, and purchase orders issued by clients act as strong supporting evidence. These documents ensure that reported receivables are backed by actual transactions.
Customer Contracts & Agreements – Formal agreements and contracts outlining the terms of sale, credit limits, and payment conditions are reviewed. These help auditors evaluate whether receivables are in line with contractual obligations and whether credit risk is properly managed.
Collection Records & Bank Receipts – Evidence of payments received from customers, such as bank statements and collection logs, is required to confirm that receivables are being settled in a timely manner. This also helps assess the effectiveness of the collection process.
Debt Provision & Write-Off History – Details of provisions made for doubtful debts and records of any write‑offs in previous years allow auditors to evaluate whether the company is making adequate allowances for uncollectible accounts, ensuring financial statements are realistic.
Credit Policy & Approval Documents – Policies outlining credit approval procedures, limits, and authorisation processes provide insight into how receivables are controlled. These are reviewed to determine whether internal controls over credit are strong and consistently applied.
Communication Logs with Overdue Customers – Maintaining communication history such as reminder letters, follow‑up emails, and collection calls with overdue customers helps auditors assess the seriousness and effectiveness of recovery efforts.
General Ledger & Trial Balance Extracts – Receivable balances reflected in the general ledger and trial balance are reconciled against supporting schedules and documentation. This ensures that financial statements accurately represent the receivables position.
How We Help You with Receivables Audit Services
Debtors Balance Verification – We reconcile reported balances with supporting documents, customer confirmations, and subsequent cash receipts, ensuring the receivables are both accurate and collectible.
Ageing & Recoverability Analysis – We analyse your receivables ageing to identify overdue accounts, assess recoverability, and recommend provisions where necessary to protect your financial statements.
Credit Control & Policy Checks – Our audit reviews your entire credit management process — from customer onboarding to collections — and advises on stronger policies that reduce overdue risk.
Reporting for Banks & Auditors – We prepare professional audit reports aligned with UAE banking and auditing standards, supporting loan applications, external audits, and investor reviews.
Advisory on Receivables Management – Beyond verifying balances, we provide recommendations on improving collection strategies, tightening credit controls, and reducing exposure to defaulting customers.
