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.

Question

Quizplus · Accepted Answer

When no reply to a positive confirmation request is received, the auditor should perform alternative procedures to verify the existence of the accounts receivable, such as examining subsequent cash receipts or other supporting documentation.

An Auditor Should Perform Alternative Procedures to Substantiate the Existence