Auditing Cases 6th Edition by Mark Beasley,Frank Buckless,Steven Glover,Douglas Prawitt

Exercise 3

Research PCAOB auditing standards (which can be found on the PCAOB's website - www.pcaob.org) related to the use of confirmations and document the specific requirements related to maintaining control of the confirmation process.
[a] Based on what you learn, provide an assessment of deficiencies in the confirmation approach Satyam's auditors took related to cash and accounts receivable.
[b] Do auditing standards require the use of confirmations in the audits of cash balances and accounts receivable balances