The business' financial statements, operating documents, and practices should be reviewed. Balance Sheet Accounts Receivable Obtain an accounts receivable aging schedule and determine if there is concentration among a few accounts. Determine the reasons for all overdue accounts. Find out if any amounts are in dispute. Review the business' credit policy.
Inventory Make sure the inventory is determined by physical count.
Manufacturer's should divide inventory into finished goods, work in progress and raw materials. Assess the method of valuation and why it was used. Determine the age and condition of the inventory. Marketable Securities Obtain a list of marketable securities. Determine the fair market value of the securities.