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AP5.13 (LO 3, 5) prepared by the members of the team working on the audit of receivables for a private company client. Jennifer is the
AP5.13 (LO 3, 5) prepared by the members of the team working on the audit of receivables for a private company client. Jennifer is the senior manager assting the engagement partner, Ruby Roge have worked together on many audits, and Jennifer knows the types of questions Ruby working papers if they are not up to the standard required by AU-c 230. Jenniferi that all documents are up to the required standard before Ruby sees them tomorrow. Moderate Research Documentation Jennifer Jones is reading documents audit fer and Ruby will ask about the s trying to make sure Rogers. Jenni Jennifer is particularly concerned about the documents relating to the receivable confirmations. This is because the audit assistant who wrote the confirmation results recommended that no further work was required. On review of the results, Jennifer discovered the audit assistant had incorrectly treated "no reply" results as acceptable for a positive confirmation, when they are acceptable only for a negative confirmation. Jennifer had ordered further work be done to follow up these "no reply" results. Required a. What is the minimum standard that audit documentation must meet? Propose how you would treat the corrections made to the audit assistant's recommendations and the additional work on receivable confirmations in the working papers. Refer to both AU-C 505 External Confirmations and AU-C 230 Audit Documentation in your answer. b
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