Unreturned positive confirmations for accounts receivable warrant which of the following actions?
A)Replacing the sample selection with a new customer.
B)Sending second requests and possibly performing subsequent procedures.
C)The projection of larger misstatements to the population.
D)Requesting that the client send additional audit correspondence to customers.

Question

Quizplus · Accepted Answer

Unreturned positive confirmations for accounts receivable indicate that there may be issues with the accuracy of the financial statements. In this case, sending second requests and possibly performing subsequent procedures is the appropriate course of action to obtain the necessary information and ensure the accuracy of the financial statements. Replacing the sample selection with a new customer, projecting larger misstatements to the population, or requesting that the client send additional audit correspondence to customers may not necessarily address the issue at hand.

Unreturned Positive Confirmations for Accounts Receivable Warrant Which of the Following