When positive confirmations are used, ASA 505 requires follow- up procedures for confirmations not returned by the customer. In such a situation, which of the following would NOT be classified as an alternative procedure?
A) Examine subsequent cash receipts to determine if the receivable has been paid.
B) Send a second confirmation request.
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 original confirmation process. Alternative procedures involve other methods to verify the existence and accuracy of the receivable.

When Positive Confirmations Are Used, ASA 505 Requires Follow- Up