10-26 LO 8, 11 One of the procedures that you are performing on the audit of Reengage Corporation is sending bank confirmations. Your audit firm has a policy of sending confirmations to all financial institutions where a banking relationship exists, although the policy acknowledges that various instances may not require sending confirmations (e.g., accounts with no activity for the period under audit, petty cash accounts at branch locations). You note several accounts in which the cash balances are relatively small. You believe that sending confirmations to the financial institutions where Reengage Corporation has an account with a small balance will not be necessary. a. What type of evidence will you obtain from the bank confirmations? b. Use the framework for professional decision making from Chapter 1 to determine which financial institutions you will send a confirmation. Recall that the framework is: 1. Structure the audit problem 2. Assess consequences of decision 3. Assess risks and uncertainties of the audit problem 4. Evaluate information/audit evidence- gathering alternatives 5. Conduct sensitivity analysis 6. Gather information/audit evidence 7. Make decision about audit problem Source: Adapted from Judgment and Choice, by Robin Hogarth