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1. Confirmation of accounts receivable is presumptively a mandatory audit procedure. In performing this procedure, auditors use positive confirmation requests or negative confirmation requests or
1. 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.
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