I need assistance with the last line in the problem:

"What is meant by alternative procedures in the confirmation of accounts receivable? As an auditor, which alternative procedures would you use? Explain and provide an example from both service and manufacturing companies."

Here's what I've put together for an answer so far:

During an audit, the auditor must confirm with the client's customer's accounts receivables.The auditor would normally select client customers with large balances and request from the customer a receivable aging report to verify what was on the books at a specified time.The are two types of confirmation, positive or negative.A positive confirmation applies when the auditor receives a response to the request for information indicating the customer agrees with the client's accounts receivable reported amount.However, a negative confirmation occurs when the customer contacts the auditor if the amounts do not agree.If the client does not respond to the auditor's request for confirmation, this would also be a negative confirmation.

When the auditor does not receive a positive confirmation from the client's customer, alternative steps must be taken to validate the client's data.Alternative procedures may be a simple as examining subsequent receipts of year end accounts receivables.