An independent auditor is engaged to audit the financial statements of a manufacturing company that, consistent with prior years, maintains a significant balance in trade accounts receivable. The auditor is satisfied that the accounts are properly summarized and classified, and that reclassifications and valuations are made in accordance with generally accepted accounting principles. The auditor is planning to use accounts receivable confirmation requests to satisfy the third standard of fieldwork.

Required:

1. Identify and describe the two forms of accounts receivable confirmation requests commonly used in practice and indicate what factors the auditor will consider to determine which form to use.

2. What alternative procedures could the auditor use to address no replies?