Auditors Follow-up Actions for Account Receivables Confirmations

As part of the fieldwork of an audit engagement for Aquatic Jet Products, Inc., 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. Wanda, the staff person assigned to the engagement, requested and obtained from the company an aged A/R trial balance 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 the customers responses and Wanda's comments on each of the following confirmations. Based on the information provided:

1) First, determine whether you have sufficient information to draw a conclusion for the account receivables balance on each confirmation.

2) If the answer is yes, conclude whether the balance is misstated or not. Explain your reason for the conclusion.

3) If the answer is no, describe additional information needed and follow-up actions auditors should take to obtain the information

solve only 4 requirements all information is given plz solve 100%

Required 4 Confirmation Letter #4 February 1, year 3 NC Boating Center, Inc. 110 Windward Blvd. Tierra Verde, Florida 33715 Re: Balance at December 31, year 2- $239,000 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, Inc. The above balance is Correct X Incorrect (show amount) If incorrect, please provide information that could help to reconcile your account. Customer Response: We cannot determine the balance due at December 31, year 2. Signature Title Date Wanda's note to file: No amount was confirmed on the response letter