You are an audit manager in GL & Co. You have been assigned to lead the engagement team to audit the financial statements of Omega Limited (Omega) as at 31 December 2021. Omega is a manufacturer of canned food and boxed drinks supplying the local restaurants and supermarkets. At the request of the audit partner Ms Lam, you are preparing the audit programme for the income and receivables systems of the company.

The trade receivable balances of Omega appear to be material and you have decided to obtain external confirmation as audit evidence. Subsequently, you asked an assistant, Dixon to prepare positive confirmation requests to 43 debtors of Omega.

By the end of February 2022, Dixon told you that 37 of confirmation requests were returned. However, out of total of 37, only 32 debtors have confirmed the outstanding balances indicated on the confirmation requests. Dixon has summarized the responses of these 5 requests in the following table and it appears that he is not quite sure as to what further audit procedures are required to be performed to follow up.

Outstanding Balance	Response
i. $120,000	We ordered $120,000 of goods from them on 15 November 2021 but they replied that they were out of stock. We finally received the goods on 5 January 2022.
ii.$75,000	Impossible! They promised to deliver $75,000 of goods to us within 7 days on 1 December 2021 but nothing was received by 8 December 2021. We subsequently cancelled the order.
iii. $220,000	They are one of our major suppliers. We know that we are owing certain amount to them but we cannot confirm whether $220,000 is the correct figure since our computerised accounting system has broken down recently.
iv. $98,000	We sent a cheque in the amount of $98,000 to them on 29 December 2021.
v. $188,000	Undelivered- No such addressee

Required:

Briefly advise Dixon on what follow-up procedures to be carried out to resolve the above five confirmation requests that were returned.