Barney and Paradigm were once again discussing auditing, this time the use of audit confirmations. Paradigm said that his parents had just received a confirmation from the auditors of The Normal Sand Bank, asking them to indicate whether or not they agreed with the balance of $637.89 that the banks records indicated was in their checking account as of December 31, 20XX. His parents threw the confirmation away, because the balance was correct. Barney told Paradigm that they should have mailed the confirmation back to the bank.

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1. Barney makes a statement that is not correct ... what did Barney say that was not accurate?

(You may want to answer this question last).

2. What is the difference, if any, between a positive confirmation and a negative confirmation

3. Would the confirmation usually be mailed back to the bank?

4. If not, to whom would the confirmation be mailed?

5. If the auditors did not receive a response to their initial request for a positive confirmation, what is their most likely next step (before performing alternative procedures)?

6. What do auditors do with audit evidence?