You are the auditor of Maple Bank for the year 2010. Maple has a large number of customers with loan accounts. The loan accounts have balances averaging $800 in a homogeneous population and the customers usually pay close attention to their balances.

Your preliminary assessment of internal control over the loan area is that control risk is low and results of the test of controls support that assessment. Inherent risk is deemed to be lower as well.

Discuss the conformation process and the types of confirmations that may be used for Maple Bank. Which confirmation would you use and why>