3. Auditing standards require auditors to send A/R confirmations.

a. A/R confirmations test which two management assertions?

b. Describe the difference between positive and negative confirmations and indicate which type of confirmations are typically used for testing A/R.

c. One limitation of confirmations as an auditing procedure is that confirmations are not always returned on a timely basis. If the auditor does not receive the initial confirmation back right away, what specific procedures do you think the auditor should take next? List several procedures including specific alternate procedures an auditor can perform to test those assertions.