When positive confirmations are used, auditing standards require alternative procedures for confirmations not returned by the customer. Which of the following would not be considered an alternative procedure?
A) Send a second confirmation request.
B) Examine subsequent cash receipts to determine if the receivable has been paid.
C) Examine shipping documents to verify that the merchandise was shipped.
D) Examine sales invoice to verify the actual issuance of a sales invoice and the actual date of the billing.

Question

Quizplus · Accepted Answer

Sending a second confirmation request is not considered an alternative procedure for unreturned confirmations. Alternative procedures typically involve examining other evidence to verify the account balance, such as subsequent cash receipts, shipping documents, or sales invoices.

When Positive Confirmations Are Used, Auditing Standards Require Alternative Procedures