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Solve this 18 Sara Smith is a senior auditor with a local audit firm. She is examining the financial statements of a manufacturing company with

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18 Sara Smith is a senior auditor with a local audit firm. She is examining the financial statements of a manufacturing company with a material trade accounts receivable balance. She is following a substantive approach in the audit. Sara is satisfied that the accounts are properly summarized and classified and that allocations and 20 21 reclassifications are made in accordance with generally accepted accounting principles. As in past years, she is planning to use the accounts receivable confirmation requests to obtain sufficient appropriate audit evidence. A substantial 24 number of accounts may be in dispute. The accounts receivable balance includes amounts owed from the following customers: Superior Electronics Ltd. $1.232.803 26 Abractive Technologies Inc 634.220 Dayco Industries Ltd. 223.565 Ray's Refrigerator Repairs Inc. 212,003 XYZ Ltd. 32.400 Total Accounts Receivable $2.334.991 REQUIRED: 31 42 Indicate which type of accounts receivable confirmation Sara should choose in this situation and explain why, applying the case facts. 34 Format B / L - 1994

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