question archive Integrated Audit Practice Case SEVENTH EDITION Assignment SIX Discussion Questions 1)AICPA auditing standards address the confirmation of accounts receivable for private company audits
Integrated Audit Practice Case SEVENTH EDITION Assignment SIX Discussion Questions 1)AICPA auditing standards address the confirmation of accounts receivable for private company audits
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Integrated Audit Practice Case
SEVENTH EDITION
Assignment SIX
Discussion Questions
1)AICPA auditing standards address the confirmation of accounts receivable for private
company audits. What are the circumstances under which confirmation of accounts
receivable is not required?
2)When confirming accounting receivable, the auditor may use positive confirmations,
negative confirmations, or a combination of both. Although the use of negative confirmations is less expensive than positive confirmations, negative confirmations are less reliable.Therefore, negative confirmations should be used only in certain circumstances. Discuss those circumstances.
3)Auditing standards indicate that the auditor should ordinarily presume that there is a
risk of material misstatement due to fraud relating to revenue recognition. How might
this concern related to revenue recognition affect the nature and extent of confirmation
procedures?
4)Responses are often not received for positive accounts receivable confirmation requests.
What should the auditor do if a confirmation response is not received?
5)Many differences identified on positive confirmation are timing differences, rather than
misstatements. Explain the nature of a timing difference and give examples of common
timing differences.
6)Misstatements were identified in the confirmation of accounts receivable. Indicate whether you believe these indicate one or more deficiencies in internal control.
