Refer to Appendix A in Chapter 5. Locate the relevant International Standard on Auditing (ISA) for external confirmations, then locate the actual standard on the IAASB's Web site, and answer the following questions.
a. What is the number of the standard?
b. Define the following key terms that are noted in the standard:
(1) Exception,
(2) External confirmation,
(3) Negative confirmation request,
(4) Nonresponse,
(5) Positive confirmation request.
c. What does the standard advise the auditor to do if management refuses to allow the auditor to perform external confirmation procedures?
d. What does the standard advise the auditor to do if the auditor identifies factors that give rise to doubts about the reliability of the response to a confirmation request? What factors would cause such doubt?
e. What does the standard advise the auditor to do if a confirmation request is not reliable?
f. What factors does the standard urge auditors to consider when designing confirmation requests?