You have been assigned to audit Accounts Receivable of St. David's Building Materials as at June 30, 2012. On that date there were 200 accounts and the balance totaled $485,570. Forty of the accounts with balances totaling $3880,500 were selected for confirmation. All except 5 confirmations were returned without exceptions. The 5 confirmations had the following information and comments The balance of $6,250 was paid on June 25, 2012 An advance payment of $3,000 made by us in May 2012 should cover the two invoices totaling $1,350 shown on the statement attached We do not owe you anything as at June 30, 2012 as the goods represented by your invoice dated June 29, 2012, number 54321 in the amount of $10,550 were received on July 5, 2012, on FOB destination terms Your credit memo dated June 13, 2012 in the amount of $4,350 cancels the balance above 5. This confirmation was returned as undelivered by the post office Required: (i) Indicate which of the confirmation responses likely represent timing differences. (5 marks) (ii) For each of the 5 responses indicate the procedures you would perform to determine whether the exception is a misstatement or has been appropriately recorded by the client. (10 marks) You have been assigned to audit Accounts Receivable of St. David's Building Materials as at June 30, 2012. On that date there were 200 accounts and the balance totaled $485,570. Forty of the accounts with balances totaling $3880,500 were selected for confirmation. All except 5 confirmations were returned without exceptions. The 5 confirmations had the following information and comments The balance of $6,250 was paid on June 25, 2012 An advance payment of $3,000 made by us in May 2012 should cover the two invoices totaling $1,350 shown on the statement attached We do not owe you anything as at June 30, 2012 as the goods represented by your invoice dated June 29, 2012, number 54321 in the amount of $10,550 were received on July 5, 2012, on FOB destination terms Your credit memo dated June 13, 2012 in the amount of $4,350 cancels the balance above 5. This confirmation was returned as undelivered by the post office Required: (i) Indicate which of the confirmation responses likely represent timing differences. (5 marks) (ii) For each of the 5 responses indicate the procedures you would perform to determine whether the exception is a misstatement or has been appropriately recorded by the client. (10 marks)