Pendekar Mastur & Co manufactures and distributes fashion clothing to retail stores. Its year end was 31 March 2022. You are the audit manager and the year-end audit is due to commence shortly. The following three matters have been brought to your attention.

1. Bank reconciliation. During last years audit of Pendekar Mastur & Cos bank and cash, significant cut off errors were discovered with several post year-end cheques being processed prior to the year end to reduce payables. The finance director has assured the audit engagement partner that this error has not occurred again this year and that the bank reconciliation has been carefully prepared. The audit engagement partner has asked that the bank reconciliation is comprehensively audited.

2. Receivables. Pendekar Mastur & Co receivables ledger has increased considerably during the year, and the year-end balance is RM23 million compared to RM14 million last year. The finance director of Pendekar Mastur & Co has requested that a receivables circularization is not carried out as several of their customers complained last year about the inconvenience involved in responding. The engagement partner has agreed to this request, and tasked you with identifying alternative procedures to confirm the existence and valuation of receivables.