Tom Jones, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Jones is satisfied that the accounts are properly summarized and classified, and are valued in accordance with generally accepted accounting principles. Jones plans to use accounts receivable confirmation requests to satisfy the third standard of fieldwork as to trade accounts receivable.

Required:

a. Identify and describe the two forms of accounts receivable confirmation requests and indicate what factors Jones should consider in determining when to use each.

b. Assume Jones has received a satisfactory response to the confirmation requests. Describe how Jones could evaluate collectibility of the trade accounts receivable.