Page 1 |
Previous | 1 of 3 | Next |
|
This page
All
Subset
|
The Client: In this discussion, the client is engaged in what is currently referred to as "old line factoring" as well as commercial financing. In old line factoring, the factor enters into an agreement with a manufacturer to purchase receivables arising from the sale of the manufacturer's product. The receivables are usually purchased at "factor's risk", which means that the factor has assumed the credit risk and has no recourse to the manufacturer for uncollectible accounts. Sometimes, receivables are purchased at "manufacturer's risk", which means that uncollectible accounts are charged back to the manufacturer; in this instance the factor acts primarily as a collection agent. The factoring fee, of course, is considerably lower than that charged under a "factor's risk" agreement. Under a commercial financing agreement, the factor advances funds to the manufacturer secured by a pledge of the manufacturer's receivables. The manufacturer performs all of the collection work and remits the actual checks received from his customers directly to the factor. In commercial financing the credit risk is assumed by the manufacturer. Our client has a strong system of internal control with periodic internal audits. The internal audit encompasses UNRESOLVED CONFIRMATION DIFFERENCES at termination of field work by John Ehling John Ehling is manager in the New York office. A native New Yorker, he joined the accounting staff of Touche, Niven & Co. prior to the merger. His client engagements include CIT Financial Corporation, Daitch Crystal Dairies, Seaman's Bank for Savings, and Yardley of London, Inc. Mr. Ehling is a graduate of Pace Institute. He is a member of the American Institute of Certified Public Accountants, the New York State Society, and the Lawyers Club. He is married and has four children. 36 THE QUARTERLY
Object Description
Title |
Unresolved confirmation differences at termination of field work |
Author |
Ehling, John |
Subject |
Accounts payable Auditing -- Documentation |
Personal Name |
Ehling, John |
Portrait |
Ehling, John |
Office/Department |
Touche, Ross, Bailey & Smart. New York Office |
Citation |
Quarterly, Vol. 10, no. 1 (1964, March), p. 36-38 |
Date-Issued | 1964 |
Source | Originally published by: Touche, Ross, Bailey & Smart |
Rights | Copyright and permission to republish held by: Deloitte |
Type | Text |
Format | PDF image with OCR under text, scanned at 400dpi |
Collection | Deloitte Digital Collection |
Digital Publisher | University of Mississippi. Digital Accounting Collection |
Date-Digitally Created | 2009 |
Language | eng |
Identifier | Quarterly_1964_March-p36-38 |