Is it possible for Fellowes and Associates to use only accounts receivable confirmations as audit evidence and adhere to the mandatory requirements in CAS 230? Explain.

Fellowes and Associates Chartered Professional Accountants is a successful mid-tier accounting firm with a large range of clients across Canada. In April 2023, Fellowes and Associates gained a new client, Health Care Holdings Group (HCHG), which owns 100 percent of the following entities:
• Shady Oaks Centre, a private treatment centre • Gardens Nursing Home Ltd., a private nursing home • Total Laser Care Limited, a private clinic that specializes in the laser treatment of skin defects The year end for all HCHG entities is June 30.
You are performing the audit field work for the 2023 year for Shady Oaks Centre. The fieldwork must be completed in time for the audit report to be signed on August 21, 2023. You have been asked to circulate the receivable confirmations. Shady Oaks Centre’s trade receivables arise from the use of clinic facilities (including the provision of medical professionals, treatment rooms, and supplies) by medical practitioners in private practice. The trade receivables balance was $3,974,569 as at June 30, 2023, and was considered material.
The centre’s payment terms are 14 days from the date of the invoice. Sixty percent of the balance is represented by invoices outstanding from five different medical practitioners. The remaining 40 percent is made up of numerous smaller amounts, most of which have been outstanding for more than 60 days. Any allowance for doubtful accounts is taken directly against the trade receivables account and not shown separately.

For each of the following documents, state whether it would be located in the auditors’ permanent file or the current file.

a. Articles of incorporation

b. Bank confirmation for the current year

c. Management representation letter for the current year

d. Long-term debt agreement

e. Organization chart

f. Process documentation for payroll g. Details of employment contracts regarding stock options h. Engagement letter i. Board of directors minutes for the current year j. Audit program for cash