Adam Signoff- On, CPA, was auditing Defense Industries, Inc. Signoff- On sent positive accounts receivable confirmations to

Question:

Adam Signoff- On, CPA, was auditing Defense Industries, Inc. Signoff- On sent positive confirmations to a number of Defense’s government customers. He received a number of returned confirmations marked “We do not confirm balances because we are on a voucher system.”

Required:
a. List alternative procedures that Signoff- On might use to ensure the validity of these accounts.
b. Assuming all the procedures you list are viable options for the Defense audit, which procedure do you believe provides the highest- quality evidence and why?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...