options for conclusion/procedure

• Send a second request for confirmation to the customer.
• Exception noted; propose adjustment and request that the controller post it to the accounting records.
• Verify by examining subsequent cash collections and/or shipping documents.
• Verify that additional invoices noted on confirmation pertain to the subsequent year.
• Not an exception, no further audit work deemed necessary.
• Not an exception, no adjustment necessary. Determine the sufficiency of allowance for credit losses.

options for conlusions/ procedure

• Send a second request for confirmation to the customer.
• Exception noted; propose adjustment and request that the controller post it to the accounting records.
• Verify by examining subsequent cash collections and/or shipping documents.
• Verify that additional invoices noted on confirmation pertain to the subsequent year.
• Not an exception, no further audit work deemed necessary.
• Not an exception, no adjustment necessary. Determine the sufficiency of allowance for credit losses.

As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once, or not at all. As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once, or not at all. As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of Decembe 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once or not at all. As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once, or not at all. As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once, or not at all. As part of the fieldwork on an engagement, the auditor obtained and documented an understanding of the company's internal controls relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of Decembe 31, Year 2, and sent positive confirmation requests to a sample of the company's customers. Assume that all confirmations received have been appropriately signed, unless otherwise noted. For each customer in the table below, review the relevant confirmation letter and Susan's comments at the bottom of each in the exhibits. Select from the option list provided the conclusion or the procedure that should be followed to clear the exception, if one exists. Choose only one procedure per confirmation. Each choice may be used once, more than once or not at all