If the auditor failed to confirm receivables when that should have been done and it may be too late to confirm now,what should the auditor do?
A)Issue an adverse opinion.
B)Extend the previous work done on subsequent collections to help determine that the receivables existed and were properly valued at the balance sheet date.
C)Automatically decide that the previously issued audit report cannot be supported in light of the omitted procedures.
D)Issue a disclaimer of opinion.

Question

Quizplus · Accepted Answer

If it is too late to confirm receivables, the auditor can extend the previous work done on subsequent collections to determine that the receivables existed and were properly valued at the balance sheet date. This approach provides sufficient evidence to satisfy the audit requirements without issuing an adverse opinion or disclaimer of opinion. Therefore, option B is the best course of action.

If the Auditor Failed to Confirm Receivables When That Should