Final answer:
To ensure the accuracy of Receivables, a confirmation of balances, review of subsequent cash receipts, and aging analysis of the balances can be used as substantive procedures.
Step-by-step explanation:
To ensure that Receivables are recorded accurately, one substantive procedure that could be employed is the confirmation of receivable balances. This involves sending confirmation letters to a sample of the entity's customers, asking them to confirm the balance owed to the entity as of a specific date. This direct verification from third parties helps to establish the existence and accuracy of the recorded receivables.
Additionally, a review of subsequent cash receipts can provide evidence that the receivables are collectible and properly recorded. This entails analyzing payments received after the balance sheet date but related to the year-end receivable balances. If payments are received on most of the outstanding receivables, it may suggest that receivables were recorded accurately at year-end.
Furthermore, performing aging analysis of the receivable balances is beneficial to assess their accuracy. This breaks down the receivable balances by the duration they have been outstanding, which can help detect errors or potential uncollectability issues that could require adjustment to the receivable balances.