When positive confirmations are used, auditing standards require follow-up procedures for confirmations not returned by the customer. Which of the following would not be considered an alternative procedure?
A) Send a second confirmation request.
B) Examine subsequent cash receipts to determine if the receivable has been paid.
C) Examine shipping documents to verify that the merchandise was shipped.
D) Examine customer's purchase order and the duplicate sales invoice to determine that the merchandise was ordered.

Question

Quizplus · Accepted Answer

Sending a second confirmation request is not an alternative procedure; it is a continuation of the confirmation process. Alternative procedures involve verifying the transaction through other means, such as examining cash receipts, shipping documents, or sales invoices.

When Positive Confirmations Are Used, Auditing Standards Require Follow-Up Procedures