As part of the June 30, 2011, audit of accounts payable of Milner Products Company, the auditor sent 22 confirmations of accounts payable to vendors in the form of requests for statements. Four of the statements were not returned by the vendors, and five vendors reported balances different from the amounts recorded in Milner€™s accounts payable master file. The auditor made duplicate copies of the five vendors€™ statements to maintain control of the independent information and turned the originals over to the client€™s accounts payable clerk to reconcile the differences. Two days later, the clerk returned the five statements to the auditor with the information on the audit schedule following part c.

Required
a. Evaluate the acceptability of having the client perform the reconciliations, assuming that the auditor intends to perform adequate additional tests.
b. Describe the additional tests that should be performed for each of the five statements that included differences.
c. What audit procedures should be performed for the nonresponses to the confirmationrequests?

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Staemn e per vendor's statement 6,618.01 (4,601.01) S 2,01700 S 9,618.93 (2,733.18) (1,000.00) S 5,885.75 26,251.80 (20,516.11) Payment by Milner on June 30, 2011 Balance per master file Staement 2 e per vendor's statement Invoices not received by Milner Payment by Milner on June 15, 2011 Balance per master file Balance per vendor's statement Balance per master file Difference cannot be located because the vendor Statement 3 failed to provide details of its account balance 5,735.69 Statement 4 Balance per vendor's statement 6,170.15 (2,360.15) S 3,810.00 S 8,619.21 (3,000.00) Credit memo issued by vendor on July 15, 2011 Balance per master file Statement 5 Balance per vendor's statement Payment by Milner on July 3, 2011 Unlocated difference not followed up because of minor amount 215.06 Balance per master file S 5,834.27