In a sample of confirmations sent to the auditee's customers,one customer failed to respond,despite the mailing of a second request.In this case,which of the following would NOT be an appropriate response?
A)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse could impact on that assessment,expand the sample,performing alternative procedures on the additional balances selected.
B)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse is insignificant,it can be ignored.
C)When the auditor concludes from the confirmations received that accounts receivable is materially misstated and the customer's balance from the nonresponse is insignificant,it can be ignored.
D)Increase the initial assessment of incorrect acceptance and revise the sample size accordingly.

Question

Quizplus · Accepted Answer

Increasing the initial assessment of incorrect acceptance and revising the sample size may not be appropriate, as it is not based on any additional evidence or information. The appropriate response would be to expand the sample and perform alternative procedures on the additional balances selected if the customer's balance from the nonresponse could impact on the fair statement of accounts receivable. If the customer's balance is insignificant, it can be ignored, regardless of whether the auditor concludes that accounts receivable is fairly stated or materially misstated.

In a Sample of Confirmations Sent to the Auditee's Customers,one