{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

CONFIRMATIONS - CONFIRMATIONS SAS67;PRACTICEALERT031...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
CONFIRMATIONS SAS 67; PRACTICE ALERT 03-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Background image of page 2
Improving Response Rates Information recipient can confirm Accounts receivable Send statement Outstanding invoices Supporting information (e.g. mortgage) Clear wording Send to specified individual
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Background image of page 4
Non responses to Positive  Confirmations Corroborate existence 2 nd  and 3 rd  requests Alternative procedures
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Exceptions Determine cause of misstatement Extrapolate the misstatements over population Consider potential for fraud
Background image of page 6
Confirmations Received by Fax or  Electronically Consider verifying by telephone Ask sender to mail original
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '10
  • RobertJ.Ramsay
  • alternative procedures, Receivable Notes Receivable, parties Unusual transactions, non responses Non, Inventory Consigned merchandise

{[ snackBarMessage ]}