Scenario for 3 questions

The auditor requested their client's aged accounts receivable schedule listing the total amount owed by each customer as of December 31, Year 2.The audit team sent positive confirmation requests to a sample of the company's customers.

The confirmation responses received with exceptions are below. Assume your staff has already started to follow up on the comments and has included their notes of what they have discovered.

Response 1 from Chip Technologies Balance being confirmed $95,000 The above balance is (please check one) Correct XX Incorrect If incorrect, please provide information that could help to reconcile your account: Customer response: Our records indicate that check number 459978 for $3,000 was mailed on December 26, year 2. Response 2 from Digital Digits Balance being confirmed $110,000 The above balance is (please check one) Correct XX Incorrect If incorrect, please provide information that could help to reconcile your account: Customer Response: We sent a payment for the entire amount on December 30. Our banking records indicate that the payment cleared our bank on January 5 year 3. AUDITOR NOTE: Per discussion with the controller, the payment from Digital Digits was received on January 3d and deposited the same day.Response 3 from BiCon Semi-Conductor Inc. Balance being confirmed $66,700 The above balance is (please check one) XX Correct Incorrect If incorrect, please provide information that could help to reconcile your account: Customer Response: Information is furnished as a matter of courtesy without a duty to do so and without responsibility. liability. or warranty, expressed or implied