L13 Notes_Part_12 - Confirmation Technique 2. Timing -...

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© W.R. Knechel Confirmation Technique 2. Timing - rollforward v. balance sheet date; Clearly, testing at year end is best as these are balances to which the auditor certifies. Advantages of testing at an interim date: early consideration of important matters early completion less overtime takes so long to return that it can delay issuance of report Disadvantages: Type II error increases less efficient When is it allowed? IC strong Test results good for period of time between test and Y/E small change in account balance predicted tests of control during interim
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© W.R. Knechel Confirmation Technique F. Control better if client doesn't see confirmation list selection of confirmands is independent of client confirmation are mailed outside clients premises and return address is to audit firm G. Alternative procedures for non-response 1. 2nd and 3rd requests 2. subsidiary cash receipts 3. duplicate sales invoice 4. shipping document 5. correspondence with client H. Is a difference symptomatic of a fraud? 1.
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L13 Notes_Part_12 - Confirmation Technique 2. Timing -...

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