Debtors Circularization in Audit

As part of the External Auditor's procedures to obtain reasonable assurance that the balances started in the Trade Receivables (Debtors) Ledgers are correct and shows a true and fair view of the Debtors' balances, the Auditor is to carry out a Debtors' Circularization.

This short video explains in summary the meaning and types of Debtors Circularization or confirmations. After seeing this video you will understand these confirmations are done. 

Below is a picture tutorial explaining the two types of Debtors Circularization.

Thanks for reading. Do leave a comment. Also, you may be interested in Types of Tax Audits carried out by the Federal Inland Revenue Service (FIRS) in Nigeria