When a customer does not return an accounts receivable confirmation, it is acceptable, without performing alternative procedures, to assume the amount is 100% overstated when generalizing from the sample to the population.

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When a customer does not return an accounts receivable confirmation, it is acceptable to assume the amount is 100% overstated when generalizing from the sample to the population because the auditor has no evidence to support the existence of the receivable.

When a Customer Does Not Return an Accounts Receivable Confirmation