$2.$ Confirmation of accounts receivable is a presumptively 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 that should exist for the auditors to use the negative form of request.

b$.$ You are auditing Dulcinea Corp. and decide to positively confirm Accounts Receivable. You select the accounts to be confirmed and provide the information to the client so that they can prepare the confirmations. The controller$$s assistant prepares the confirmations and mails them to the customers with a return envelope addressed to Dulcinea Corp. Describe what is wrong with this process, why it is wrong and what should have been done.

c$.$ 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.