In the confirmation of accounts receivable for Reliable Service Company Ltd, 85 positive and no negative confirmations were mailed to customers. This represents 35% of the dollar balance of the total accounts receivable. Second requests were sent for all non-responses, but there were still 10 customers who didn't respond. The decision is made to perform alternative procedures on the 10 unanswered confirmation requests. An assistant is requested to conduct the alternative procedures and report to the senior auditor after he has completed his tests on two accounts. He prepares the following information for the working papers:

1. Confirmation request no. 9

Customer name-Jolene Milling Co.

Balance-$3621 at 30 June 20X4

Subsequent cash receipts per the accounts receivable master file 15 July.........20X4-$1837

......................................................................................20 July 20X4-$1263

....................................................................................6 August 20X4-$1429

2. Confirmation request no. 26

Customer name-Rosenthal Repair Service

Balance-$2500 at 30 June 20X4

Subsequent cash receipts per the accounts receivable master file 9 August........20X4-$ 500

Sales invoices per the accounts receivable master file

(I examined the duplicate invoice)...........................................1 March 20X4-$4200

REQUIRED

a. If you are called on to evaluate the adequacy of the sample size, the type of confirmation used and the percentage of accounts confirmed, what additional information will you need?

b. Discuss the need to send second requests and perform alternative procedures for non-responses.

c. Evaluate the adequacy of the alternative procedures used for verifying the two non-responses.