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-50. Ming. CPA. is engaged to audit the financial statements of Wellington Sales Ine, for the year endev December 3, 200. Ming obtained and documented

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-50. Ming. CPA. is engaged to audit the financial statements of Wellington Sales Ine, for the year endev December 3, 200. Ming obtained and documented an understanding of the elient's business and envirunment, including internal control over business processes relating to afecunts necivable. She assessed the risks of material misstatement for the assertions of exisremes, rights, and valuation of accounts receivable at a high level. Ming requested and obtained from Wellington an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 20X0, and sent positive confirmation requests (signed by Sam Blocker, the controller of Wellington). Ming has asked Zimber, the staff assistant assigned to the engagement, to follow up on the nine returned confirmations that follow. Assume that each confirmation is material if the potential misstatement is projected to the population. Also, assume that in all cases the debit balance is the result of a credit to "Sales." In several circumstances, a "Note to files" is included with additional information relating to the confirmation. Describe the procedure or procedures, if any, that Zimber should perform to resolve each of the nine confirmations (below) with exceptions that were returned and, if possible, provide the atudited value of the account. Assume that all amounts involved are considered material. Gonfinmatien fa7 December 31, 26x0, is coirect enceot ins noled beloor The Big faige Ey Hert Quintos Dater 1/21 Euteptont We wae a waucher agham by ladividual involce. We carnot verify the bolontce, but Welingtort is ane of our rogular supplier. Wh arabebly bwe them aomething. Confinutien 151 The ataticment of coar bccoont shawing n bulknct of 525,000 due Whelingtoin 5 ales inc at: Becember 3t12co. , a cainect eweept as noted thetcur: Fodrle Carporution of Amenica ond the Werld Ey Risoby foertion Dace: traxt Euceptoons Out recondr shour ahot we sent than a check for the anount due on 12.23x0. Canfimation 2 U2 December 31,200, is coirect encept as noted beiow: Pibson Gonder Corporation: Pr Som Sneffiele Date 11001 Excmintions: Note to files This confintonon was returned by the poutal stefitse ds Fretumt fo sender, gatress unknowex." Confirmsation =68 The state inent of our account chowing a balance ct 986.000 due Welingtort Sales inciat December 3 i . 20xo, is cariect except as noted boliowo Ytanrarian Ruckars Compony: By Tomt Turkent Date 2.7ix? Exceptone We mailed that check for the ful amount on 1.31. The merehandise wos not recelved antil 12/23/80. Confirmation +72 The staternent of our accourt showing a thalance of 522.000 dve Weilington Sales linc; as: Deceinber 37,200, is contect except as nored belowc Date: 1/301 Exceptions Yex, I guess we owe this amount, but Wellington made clear to us that we could return any of the items we did not spll. But, so fac sales are good, and we ve sold most of the iterms. Confirmatlan 877 The statement of our account thowing a balance of 532,000 due Wellington. Sales tnc, at December 31, 20x0, is correct except as noted belovic: Zeil incorporated By John Nolar Date. 1/19/ /1 Exceptions: We received 324,000 worth of goods an cansignment from Wellington on 2/10.00, but they are not sold yet. Confirmation 2799 The statement of pur account showing a balance of 542,000 due Wellington Sales lnc. at December 31, 20x0, is conest except as noted below. Date: 1/22/1 Exceptions: Yes, we ordered $42,000 of merchandise on October 15 , but Wellington was out of stock until recently. They seem to always be out of stock. We finally received the goods on January 4,201

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