If the auditor decides not to confirm accounts receivable that are material, the auditor should
A) always use alternative procedures to audit the accounts receivable.
B) include copies of customer statements in the audit files.
C) document the reasons for such a decision in the audit files.
D) include copies of customer sales invoices in the audit files.

Question

Quizplus · Accepted Answer

If the auditor decides not to confirm accounts receivable that are material, they should document the reasons for such a decision in the audit files. This documentation is important to show that the auditor exercised professional judgment when making this decision and to provide evidence that alternative procedures were used in the audit process. It is not necessary to always use alternative procedures or include copies of customer statements or sales invoices in the audit files unless the auditor determines that these procedures are necessary for adequate audit evidence.

If the Auditor Decides Not to Confirm Accounts Receivable That