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What accounts and assertions are informed by the confirmation of accounts receivable? ? What sampling approach is likely to be used when confirming accounts receivable?
- What accounts and assertions are informed by the confirmation of accounts receivable? ?
- What sampling approach is likely to be used when confirming accounts receivable? ?
- Professional scepticism is defined in auditing standards as "an attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence". Reflect upon, and note down, some behaviours that you think reflect professional scepticism (e.g., to understand the biases that may underlie management judgments). If you wish, you may use the testing around accounts receivable confirmations to place your response into some context (e.g., be conscious of the motivation of those completing the confirmation to diligently fill out the information), but this is not essential (i.e., you may note down broader comments that impact several areas of the audit). Please note that this requires some reflection and considered thought based on what you now know about the conduct of an audit.
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