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:

Pennsylvania Steel Industry

An industrial sector historically significant to both the state of Pennsylvania and the United States, known for its substantial contribution to the country's steel production and economic development.

Disabled

Pertains to individuals experiencing physical, mental, developmental, or intellectual impairments that significantly hinder major life activities.

Child Laborers

Young individuals who are employed in work that is considered exploitative or harmful to their development and well-being, often regulated or prohibited by law.

Immigrant Families

Families that have relocated from one country to another, often in search of better living conditions, opportunities, or to escape conflict.