Positive confirmations are generally used when an

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when it disagrees with the amount due to the client. Positive confirmations are generally used when an account contains large individual balances or if errors are anticipated because control risk was judged to be high. Negative confirmation requests are used when there are a large number of accounts with small balances, control risk is assessed to be low, and the auditor believes that the customers will devote adequate attention to the confirmation. 10 - 12. C 10 - 13. D 10 - 14. C 10 - 15. B 10 - 16. A 10 - 17. D 10 - 18. B 10 - 19. A 10 - 20. C 10 - 21. A 10 - 22. A 10 - 23. B 10-27 Adam signoff –On, was auditing defense Industries, Inc. Signoff – on sent positive
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accounts receivable confirmations to a number of Defense’s government customers. He received a number of returned confirmations marked “We do not confirm balance because we are on a voucher system.” In addition to sending second requests, Signoff-On can perform the following audit procedures: Examination of subsequent cash receipts. Examination of the customer orders, shipping documents, and duplicate sales invoices. Examination of other client documentation.
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  • Spring '12
  • Na
  • invoice, negative confirmation requests

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