Question
You are involved with the audit of Jelco Company for year 1 and have been asked to consider the confirmation reply results indicated below. For
You are involved with the audit of Jelco Company for year 1 and have been asked to consider the confirmation reply results indicated below. For each confirmation reply as to the proper action to be taken from the possible actions. Each answer is used once, some more than once.
A. | Exception; propose an adjustment. |
B. | Verify whether the additional invoices noted on the confirmation reply pertain to the year under audit or the subsequent year. |
C. | Not an exception, no further audit work is necessary. |
D. Examine shipping documents and/or subsequent cash receipts.
You received no reply to a positive confirmation request to Blake Co. Subsequently you recalled that Blake Co. has a policy of not responding to confirmation-in writing or orally. You received no reply to a negative confirmation request to Adams Co. While that |
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