You are an auditor with the firm Tao & Geo LLP. You client, Teson Fine Clothes, is a small retail distributor with a December year end. Teson has several clients in the greater Toronto and Hamilton areas. A material amount of the balance sheet is comprised of accounts receivable. The credit manager approves credit limits for all clients before a new customer is approved for credit. Credit reviews are done at least two times per year. A checkmark is made in the system to acknowledge the credit review was done and to provide for an audit trail for any increases or decreases to a customer's credit limit.

The company uses an off the shelf accounting software package that includes a sales journal and subledgers for accounts receivable. Sales are recorded upon shipment of the goods and bills of lading are matched to sales invoices. Records and source documents include bank statements, sales orders, sales invoices and shipping records.

For the 2018 audit, you sent out 40 accounts receivable confirmations. 6 material confirmations came back stating we are not able to confirm these balances at this time due to some system that arose when we converted our systems in November.

Required

a)Write 3 test of controls and the related key control objective for the accounts receivable confirmations that you were not able to confirm

b)Write 3 substantive procedures and the related key management assertion for the accounts receivable confirmations that you were not able to confirm