As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Susan, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, year 2, and sent positive confirmation requests to a sample of the company customers. Review Susan's comments for the following confirmation and determine the best conclusion and/or follow-up procedures. Confirmation Letter #3 February 1, year 3 Re: Balance at December 31, year 2 - $72,000 Dear Sirs: As of December 31, year 2, our records indicate your balance with our company as the amount listed above. Please complete and sign the bottom portion of this letter and return the entire letter to our auditors, JS LLP, PO Box 100, Orlando, Florida 32806. A stamped, self-addressed envelope is enclosed for your convenience. Sincerely, Aquatic Jet Products, Incorporated The above balance is Correct X Incorrect (show amount) $613,000 If incorrect, please provide information that could help to reconcile your account. Response: Per our records, the following invoices are outstanding: none. Susan's note to file: Invoices #4593 and 4738 are not on the A/R aging report at 12/31, year 2