CONFIRMATIONS

CONFIRMATIONS - CONFIRMATIONS SAS67;PRACTICEALERT031 Accountsreceivable Notesreceivable Inventory Constructionand productioncontracts

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CONFIRMATIONS SAS 67; PRACTICE ALERT 03-1
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Confirmations used for Accounts receivable Notes receivable Inventory Consigned merchandise Construction and  production contracts Actual and contingent  liabilities Investment securities Market values Accounts payable  Notes payable Lines of credit Financial institution  information Related parties Unusual transactions
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Improving Response Rates Information recipient can confirm Accounts receivable Send statement Outstanding invoices Supporting information (e.g. mortgage) Clear wording Send to specified individual
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Negative vs. Positive Combined inherent and control risk low Large number of small balances No reason to believe recipients are unlikely to  give consideration Supplement negative confirms with other  procedures.
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Non responses to Positive  Confirmations Corroborate existence 2 nd  and 3 rd  requests Alternative procedures
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Exceptions Determine cause of misstatement Extrapolate the misstatements over population Consider potential for fraud
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Confirmations Received by Fax or  Electronically Consider verifying by telephone Ask sender to mail original
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This note was uploaded on 01/20/2011 for the course ACC 603 taught by Professor Robertj.ramsay during the Spring '10 term at Kentucky.

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CONFIRMATIONS - CONFIRMATIONS SAS67;PRACTICEALERT031 Accountsreceivable Notesreceivable Inventory Constructionand productioncontracts

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