Question 15 (18 marks) Danny is auditing the financial statements of a trading company with a significant amount of trade accounts receivable. He is satisfied that the accounts are correctly summarized and classified and that valuations are made in accordance with GAAP. Danny is planning to use accounts receivable confirmation requests to obtain sufficient appropriate evidence as to trade accounts receivable. Required: a Identify and describe the two primary forms of accounts receivable confirmation requests. Indicate any TWO factors Danny should consider in determining when to use EACH (8 marks) b. Assume that Danny has received a satisfactory response to the confirmation requests. Briefly describe TWO methods on how Danny can evaluate collectibility of the trade accounts receivable. (4 marks) c. Suggest THREE auditing steps should Danny perform if there is no response to a positive confirmation (6 marks) End of Paper