Homework answers / question archive / Control over the receipt of cash sales is best achieved when two or more employees participate in each transaction True False An auditor should perform alternative procedures to substantiate the existence of accounts receivable when A

Control over the receipt of cash sales is best achieved when two or more employees participate in each transaction True False An auditor should perform alternative procedures to substantiate the existence of accounts receivable when A

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Control over the receipt of cash sales is best achieved when two or more employees participate in each transaction True False
An auditor should perform alternative procedures to substantiate the existence of accounts receivable when A. No reply to a positive confirmation request is received. B. No reply to a negative confirmation request is received. C. Collectability of the receivables is in doubt. D. Pledging of the receivables is probable.
Confirmation of accounts receivable by direct communication with the debtor tests the existence of accounts receivable True False
After the CPAs have selected particular accounts receivable for confirmation: A. The CPAs should carefully list the audited values of all of those accounts before turning the letters over to the client to type and mail. B. It is important that every account selected that has a material balance ultimately be verified by confirmation or the application of alternative procedures; immaterial balances never require any follow-up through alternative procedures. C. All requests for confirmation should be mailed in envelopes bearing the CPA firm's return address and should include a return envelope addressed to the CPA firm. D. All differences between confirmation replies and book values should be reconciled by the CPAs, rather than the client.