When Positive Confirmations Are Used, ASA 505 Requires Follow- Up

question 95

Multiple Choice

When positive confirmations are used, ASA 505 requires follow- up procedures for confirmations not returned by the customer. In such a situation, which of the following would NOT be classified as an alternative procedure?

• A) Examine subsequent cash receipts to determine if the receivable has been paid.
• B) Send a second confirmation request.
• C) Examine shipping documents to verify that the merchandise was shipped.
• D) Examine customer's purchase order and the duplicate sales invoice to determine that the merchandise was ordered.

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Definitions:

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