An auditor should perform alternative procedures to substantiate the existence of accounts receivable when:
A)No reply to a positive confirmation request is received.
B)No reply to a negative confirmation request is received.
C)Collectibility of the receivables is in doubt.
D)Pledging of the receivables is probable.

Question

Quizplus · Accepted Answer

When no reply is received to a positive confirmation request, auditors perform alternative procedures to verify the existence of accounts receivable, as it indicates a lack of confirmation from the debtor.

An Auditor Should Perform Alternative Procedures to Substantiate the Existence