Unreturned positive confirmations for accounts receivable warrant which of the following by the auditor?
A)replacing the sample selection with a new customer.
B)sending second requests and possibly performing alternative 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

When positive confirmations are not returned, the auditor should send second requests and possibly perform alternative procedures to obtain evidence regarding the accounts receivable balance. Replacing the sample selection with a new customer or requesting that the client send additional audit correspondence to customers may not necessarily address the issue of unreturned confirmations. The projection of larger misstatements to the population may be necessary if the error rate in the sample is high, but this is not the first step that the auditor should take.

Unreturned Positive Confirmations for Accounts Receivable Warrant Which of the Following