While performing interim audit procedures of accounts receivable, numerous unexpected errors are found resulting in a change of risk assessment. Which of the following audit responses would be most appropriate?
A)Move detailed analytical procedures from year end to interim.
B)Increase the dollar threshold of vouching customer invoices.
C)Send negative accounts receivable confirmations instead of positive accounts receivable confirmations.
D)Use more experienced audit team members to perform year-end testing.

Question

Quizplus · Accepted Answer

Using more experienced audit team members to perform year-end testing would be the most appropriate response in this scenario. The finding of unexpected errors during interim procedures indicates that the risk of material misstatement in accounts receivable is higher than originally assessed. Using more experienced audit team members can help ensure that the year-end testing is thorough and that any material misstatements are identified and corrected. Moving detailed analytical procedures from year end to interim or increasing the dollar threshold of vouching customer invoices wouldn't necessarily address the higher risk of material misstatement identified during interim procedures. Sending negative accounts receivable confirmations instead of positive accounts receivable confirmations could be considered, but using more experienced audit team members is still the most appropriate response.

While Performing Interim Audit Procedures of Accounts Receivable, Numerous Unexpected