Confirmation of Accounts Receivable Is Presumptively a Mandatory Audit Procedure

Essay

Confirmation of accounts receivable is presumptively a mandatory audit procedure.In performing this procedure,auditors use positive confirmation requests or negative confirmation requests or a combination of both.
a.Describe three conditions which should exist for the auditors to use the negative form of request.
b.If a response is not received to an initial positive confirmation request,describe the action that should be taken by the auditors,including a discussion of alternative auditing procedures.