When auditing trade receivables, which document should be examined for evidence of payment disputes?

When auditing trade receivables, post year-end credit notes are particularly relevant because they can provide clear evidence of any payment disputes that may have arisen after the accounting period ended. These credit notes often indicate that customers have contested amounts owed or have received adjustments to their invoices due to various reasons, such as goods returned or pricing issues.

By reviewing these documents, auditors can ascertain whether there are unresolved disputes that could affect the collectability of the receivables recorded in the financial statements. This is critical for assessing the accuracy of trade receivable balances, as disputed amounts may need to be adjusted or written off, thereby impacting the financial position of the entity.

In contrast, examining customer satisfaction surveys, marketing brochures, or vendor invoices does not directly address the status of payment disputes. While these documents may provide useful insights into customer relationships or product/service quality, they do not offer the concrete evidence required to assess issues relating to receivables comprehensively.