ou are reviewing the results of accounts receivable confirmation carried out on $40$ debtors of your client, XYZ Limited $($XYZ$).$ One of the accounts receivable selected, KMO Pty Limited $($KMO$),$ has responded to your request for confirmation stating that no debt is owing by KMO to XYZ$.$ The audit assistant concluded as follows: One discrepancy only was found between the client's records and the confirmations received; therefore, trade receivables are fairly stated. $.$ B$.$ As part of your review of the cash section, you note that: year$-$end balances have been agreed back to copies of the monthly bank statements; copies of the statements have been put on file as audit evidence; and confirmation requests have been returned to you via the client so as to enable you to achieve the audit clearance deadline. The audit assistant has concluded that cash balances are fairly stated. Required: You are the audit senior and have been presented with the above information by the audit assistant. Comment on whether or not you agree with the audit assistant's conclusions, giving reasons and the appropriate additional action you would take.