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As part of the June 30, 20X2 audit of accounts payable of their client, Boone, CPA, sent 22 confirmations of accounts payable to vendors in

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As part of the June 30, 20X2 audit of accounts payable of their client, Boone, CPA, sent 22 confirmations of accounts payable to vendors in the form of requests for statements. Four of the statements were not returned by the vendors, and five vendors reported balances different from the amounts recorded in the client's accounts payable master file. Boone made duplicate copies of the five vendors' statements to maintain control of the independent information and turned the originals over to the client's accounts payable clerk to reconcile the differences. Two days later, the clerk returned the five statements to Boone with the information on the audit schedule attached. REQUIRED: (1) (2) Is it acceptable for the auditor to have the client perform the reconciliations on the five vendors' statements? Provide an explanation for your answer, Describe the additional tests that should be performed for each of the five statements that included differences. What audit procedures should be performed for the confirmation requests that were not responded to? Be specific with your answers. BOONE, CPA RECONCILIATION OF VENDOR STATEMENTS TO ACCOUNTS PAYABLE MASTER FILE JUNE 30, 20X2 Statement 1 Balance Per Vendor Statement $ 6,625.00 Payment By Company on June 30, 20X2 ( 4.500.00) Balance Per Master File 2,125.00 Statement 2 Balance Per Vendor Statement Invoices Not Received By Company From Vendor Payment By Company on June 15, 20X2 Balance Per Master File $ 9,600.00 ( 2.750.00) ( 1,000.00) $ 5,850.00 26,500.00 (20,500.00) Statement 3 Balance Per Vendor Statement Balance Per Master File Unexplained Difference--vendor did not provide detailed information to allow for determining the difference 6,000.00 Statement 4 Balance Per Vendor Statement Credit Memo Issued By Vendor on July 15, 20X2 Balance Per Master File ( 6,200.00 2.700.00) 3,500.00 Statement 5 Balance Per Vendor Statement Payment By Company on June 15, 20X2 Unlocated Difference--ignored due to immaterial amount Balance Per Master File $ 9.250.00 (3.200.00) ( 250.00) 5,800.00

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