Distinguish between positive and negative confirmations. Under what conditions would you expect each type of confirmation to be appropriate?
Answer to relevant QuestionsWhat special care should be taken with regard to examining the sources of accounts receivable confirmation responses?Why is controlled access to computer programs and master files (such as credit files and price lists) important in a control environment? In the Audit 11.1 case, name one bank reconciliation control procedure that could have revealed signs of embezzlement.The auditor is considering confirming zero-balance accounts from the auditee’s accounts receivable sub-ledger to provide evidence concerning the completeness assertion for accounts receivables and sales.Required:a. What ...You were engaged to conduct an audit of the financial statements of Clayton Realty Corporation for the year ending January 31.The examination of the annual rent reconciliation is a vital portion of the audit. The following ...
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