A sample of positive confirmations is mailed for material accounts receivable balances.The auditor does not receive a response for many of the confirmations.Which of the following is not an acceptable alternative procedure?
A)subsequent collection.
B)inquiry of management.
C)mailing second and third confirmations.
D)examination of supporting documents.

Question

Quizplus · Accepted Answer

Inquiry of management is not an acceptable alternative procedure for unresponsive confirmations because it does not provide sufficient audit evidence to verify the existence and accuracy of the account balances. Acceptable alternative procedures include subsequent collections, mailing second and third confirmations, and examination of supporting documents.

A Sample of Positive Confirmations Is Mailed for Material Accounts