Confirmations [WLOs: 2, 3, 4] [CLOs: 2, 3] Prior to

 

Confirmations [WLOs: 2, 3, 4] [CLOs: 2, 3]

Prior to beginning work on this discussion forum, read Chapters 10 and 11 in the course textbook.

Confirmation of accounts receivable is presumptively a mandatory audit procedure. In performing this procedure, auditors use positive confirmation requests or negative confirmation requests or a combination of both. Address the following in your discussion post:

  • Explain the difference between negative and positive confirmations.
  • Describe conditions which should exist for the auditors to use the negative form of request.
  • Describe conditions which should exist for the auditors to use the positive form of request.
  • If a response is not received to an initial positive or negative confirmation request, describe the action that should be taken by the auditors, including a discussion of alternative auditing procedures.

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